From record-breaking sunshine to housing innovation and global trade tensions, May 2025 delivered plenty to unpack. Across energy policy, home heating, and international developments, the shifts we’ve seen this month are already shaping what the year ahead might look like for households, developers, and suppliers alike. Here’s a round-up of last month’s biggest updates worth knowing.
Throughout May, Trump announced several updates about the impending tariffs on steel and aluminium. Most recently, he announced a further increase in the tariffs, taking them from 25% to 50%, effective from the 4th of June.
There have been a handful of global reactions so far, with Canada criticising the tariff increase as ‘illegal’ and indicating that they’d take time to ‘craft a response’, Mexico expressing disapproval and considering taking countermeasures, and the EU reported ongoing trade discussions with the US, but also criticising the tariff increase.
As for the UK, we have been granted exemption from the latest increase, and our tariffs have remained at 25% due to ongoing trade discussions.
As of the 29th of May, the UK government officially scrapped the one-metre rule for heat pump installations. This means that heat pumps no longer have to be installed a metre away from neighbouring properties. This has made them more accessible for people with limited space, though potentially less welcome news for neighbours!
Another new incentive is being considered that could see more houses with heat pumps, with the government announcing a potential offering of electricity bill discounts.
On the 23rd of May, Ofgem announced a 7% reduction in the energy price cap, for July to September. This will bring it down to an annual £1,720 for a typical dual-fuel household. The drop is primarily due to lower wholesale energy prices, though bills still remain significantly higher than pre-crisis levels. Consumers are being advised to shop around for fixed deals, as some are currently undercutting the new cap.
Spring 2025 was officially the sunniest spring on record since data began in 1910. The UK saw 653.3 hours of sunshine, 43% more than the seasonal average. Combined with rising solar capacity, this led to a huge jump in solar power generation, with 7.6 terawatt hours (TWh) produced between January and May, a 42% increase compared to the same period in 2024.
This surge meant lower energy bills for around 1.5 million UK households equipped with solar panels. Looking ahead, the government is aiming to triple national solar capacity by 2030, with further policy developments expected later this year.
Barratt Developments, the UK’s largest housebuilder, announced in May that it will adopt Passivhaus standards across all its new-build homes in London. Their initial phase includes 728 ultra-energy-efficient homes at two major sites: High Barnet and Bollo Lane in Acton. It’s part of a £1.9 billion partnership with Places for London, aiming to deliver over 4,000 homes over the next decade.
The homes will include features such as triple-glazed windows, climate-resilient air tempering systems, and exhaust air heat pumps. Together, these technologies could reduce heating and hot water bills by up to 80%, and cut carbon emissions by as much as 90% compared to conventional systems.
Whether it’s geopolitical uncertainty, changes to heating policy, or innovation in how we build and power homes, May has offered a glimpse of the future, both its challenges and opportunities. For homeowners, developers, and energy suppliers alike, it’s clear that adaptability and forward-thinking design will play a central role in what comes next.
If you have any questions about any of these updates, or about heating in general, please get in touch. We’re always here to help!
Tags: Industry insights.
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