The High Court has agreed to hear a judicial review of housing secretary Michael Gove’s policy to limit local councils from setting higher energy efficiency standards for new homes.

The Good Law Project and Rights Community Action launched a legal challenge to the policy directive, which was revealed by the Department for Housing, Levelling Up and Communities (DHLUC) late last year, in February.

The groups have challenged Gove’s policy, claiming it will “discourage building homes to a higher standard” and calling it a “policy disaster”.

In a ministerial statement in December, the Department for Levelling Up, Housing and Communities (DLUHC) said local authorities should not go beyond minimum energy efficiency standards for new buildings in their local plans.

DLUHC also launched a consultation on Future Homes and Buildings Standards in December, seeking views on policies such as the minimum energy efficient standards (MEES).

The campaigners argue that DLUHC’s statement is unlawful as it contradicts the objectives set out in the Climate Change Act 2008. They said it could also breach the Environment Act 2021, which requires policies to be assessed for their environmental impact.

Rights Community Action’s chief executive, Naomi Luhde-Thompson, said: “Laws to protect the environment and to guard against exactly this sort of ministerial folly need to come into their own and force a change in the Government’s approach so that councils can plan for zero-carbon places.”

Jo Maugham, executive director of Good Law Project, added: “This will be costly, wasteful and an enormous headache for homeowners.”

“Gove’s policy will discourage building homes to a higher standard. This will be beneficial in the short term for the huge housebuilders and developers that fund the Conservative Party – and terrible for everyone else. We think it’s time to say ‘enough’.”

The hearing will take place at the earliest available date after 20 May.