Hot Property: The Latest on Heat Network Regulation for the Real Estate Sector

The BPF "Hot property" event brought together expertise from across the industry, with practical experience from Clare Masters, Head of Sustainability at Quintain, technical and commercial insight from Donald Sinclair, Managing Director at Hodkinson Consultancy, and analysis of the regulatory picture from Chris Paul and Hannah Giebus of Trowers & Hamlins' Energy & Sustainability team. 

The session explored how developers, operators and investors should prepare for a regulated market, the implications of the Heat Network Technical Assurance Scheme (HNTAS), and the broader direction of policy on decarbonisation and consumer protection.

Chris Paul, Head of Energy & Sustainability at Trowers & Hamlins LLP, opened with an overview of the regulatory picture, including consumer protections, technical standards and zoning. Clare Masters, Head of Sustainability, reflected on Quintain's experience with operational heat networks at their Wembley Park development, highlighting how ESCO-operated schemes are likely to be well-placed to handle the transition to a regulated market.

During the panel discussion, led by Rob Wall, Assistant Director at the BPF, speakers addressed both the challenges and opportunities presented by the new regulatory regime. With the launch date of 27 January 2026 fast-approaching, delayed consultations responses and uncertainty on standards have made it difficult for the real estate sector to prepare. Although detail is still lacking, the regulatory framework, once in force, is expected to provide improve consistency across the sector, pave the way for further decarbonisation, and strengthen protections for consumers.

The session ended with practical advice and tips from the panel on how to prepare. Key takeaways include:

1. Deliver heat networks in the right places (and deliver them well) – Heat networks can provide an efficient, low-cost and low-carbon heating solution for developments. Although zoning policy is still awaited, early engagement on design and technical standards will improve long-term performance.
2. Change in Law – For existing heat networks, review your change in law provisions under your existing contractual arrangements to determine how the introduction of regulation will impact you.
3. Future-proof – For future dealings or contracts currently under negotiation, ensure enough flexibility has been built in to future-proof for the transition to regulation, including reviewing your leases, tenancy agreements and supply agreements.
4. Act now – With the January 2026 launch date fast-approaching, start collating information about existing heat network and pipeline projects to ensure your organisation is prepared. 

To keep up to date with heat network regulation, why not join the BPF Heat Network Network? Get in touch to find out more. You can also check out our Heat Network Network page here.