Thank you for contacting me about improving the construction sector to help address climate change.
You are absolutely right that we need to continue to look for new ways to improve energy efficiency and make sure we look at all industries to reduce our carbon footprint.
It is important that national policy encourages industries to improve their practices and supports the delivery of buildings that have long-term environmental benefits. As set out in the Net Zero Strategy, the Government is aiming to support action in the construction sector by improving reporting on embodied carbon in buildings and infrastructure with a view to exploring a maximum level for new builds in the future. The Future Homes Standard will also ensure that – from 2025 – new homes produce 75 per cent less carbon emissions through low-carbon heating and high fabric standards.
I do believe that current policies place considerable emphasis on improving, repurposing and revitalising existing properties. For instance, in 2006-07, there were over 22,000 residential unit demolitions in England, which has fallen by 74 per cent in 2021-22. Changes to permitted development rights are also allowing for better mixes of building uses to reflect changing business and retail models, helping utilise empty properties and repurpose them to once again serve local communities. Moreover, I understand that reforms to the planning system will look at making changes to the National Planning Policy Framework to ensure the reformed planning system can effectively mitigate and adapt to climate change and maximise environmental benefits. This is in addition to measures in the Levelling Up and Regeneration Bill which will strengthen environmental outcomes through a new requirement to prepare Environmental Outcome Reports.
Regarding financial support, there is already a reduced VAT rate of five per cent for residential construction in cases like change of use conversions and the renovation of properties that have been empty for two years or more.