UK housebuilders face several unknowns over new regulations set to be introduced in 2025, according to analysts.
Questions over supply chains, labour shortages and timescales all remain ahead of sweeping reforms to building standards which will be implemented under the government’s Future Home Standard, UBS analysts said.
Under the new rules, homes will be built to emit 75-80% less carbon through the use of better insulation and new technology.
However, UBS argued that the likes of Barratt Developments PLC (LSE:BDEV), Bellway PLC (LSE:BWY) and Taylor Wimpey PLC (LSE:TW.) have been left in the dark over the new plans.
Whether there is a transition period for housebuilders is one question, UBS said, while the ability of suppliers to meet demand for new materials and the need to upskill workers remain as other key risks.
Further delays could be created as a result of companies having to grapple with different regulations too, the analysts added.
UBS forecast the average building costs per plot will grow by between £5,500 and £6,000 after the rule change, with the cost of heat pumps largely driving the rise.
Despite the concerns, UBS remained optimistic towards Barratt, Bellway and Taylor Wimpey, adding ongoing trials of new home designs and consultations could see questions answered before the new rules are brought in.