International real estate broker King Sturge has urged European governments not to soften energy emission targets despite the difficult economic conditions and concerns about energy security. However, King Sturge admits notes in the 2009 edition of its European Property Sustainability Matters report that implementation of the green agenda faces significant obstacles. 'It is s unlikely we will see many 'green' or 'eco' towns being built in the next few years. In the UK the cost of achieving zero carbon emissions under the Code for Sustainable Homes could raise construction costs by up to 42%. At a time when capital and land values are falling this is particularly difficult to achieve,' the broker says.
International real estate broker King Sturge has urged European governments not to soften energy emission targets despite the difficult economic conditions and concerns about energy security. However, King Sturge admits notes in the 2009 edition of its European Property Sustainability Matters report that implementation of the green agenda faces significant obstacles. 'It is s unlikely we will see many 'green' or 'eco' towns being built in the next few years. In the UK the cost of achieving zero carbon emissions under the Code for Sustainable Homes could raise construction costs by up to 42%. At a time when capital and land values are falling this is particularly difficult to achieve,' the broker says.
The latest King Sturge report on property sustainability raises questions about the cost of the green agenda, its impact on development and the need for European harmonisation of the tools measuring sustainability. The report says that while climate change is a priority in the medium to long term, energy security has become a very real issue for many European countries in the short term; securing the energy required to operate production facilities and buildings, to transport goods and not least to keep households warm in winter is becoming increasingly difficult. The recent example of gas supplies from Russia is a good illustration, King Sturge says.
King Sturge also expects that the high cost of meeting low emission targets will have an impact on property development and urban regeneration in particular. To create a zero-carbon home could increase costs by 25% to 42%. Not only will this slow development in the short term but it is also likely to have an impact on property values in the medium term. Rents and capital values will have to rise to pay for these extra costs.
The report says there is an increasing number of tools assessing the environmental impact of a building but these vary greatly country by country. Meanwhile the European Union is still working to lay down a common methodology for the measurement of energy performance requirements - including all retro-fits and improvements - and member states are required to have national plans in place by 2011.
To download your copy, go to www.kingsturge.com/european-property-sustainability-matters or click ont he link below.
