Property clients to ramp up spending on decarbonising

Aaron Morby 1 year ago
Share

Almost half of property companies are planning to raise investment into carbon reduction this year to avoid being lumbered with distressed assets.

Pace of green retrofits to accelerate like Mace's Woolgate Exchange job in London
Pace of green retrofits to accelerate like Mace's Woolgate Exchange job in London

According to a survey by the British Property Federation of boardroom directors, 49% plan to accelerate the delivery of their net-zero programmes over the next twelve months.

A further 28% expect to maintain investment at its current level. Just 2% expect to scale back delivery.

London remains the chief property investment destination for leaders, with 40% expecting to increase development in the capital over the coming year, the Midlands, and other key regions, are also likely to receive increases in investment.

Positive views around the construction of the HS2 rail line in cities like Birmingham, may account for the 28% expected increase in development in the Midlands. The North of England and Yorkshire are also expected to get a 19% uplift.

The shift toward emerging asset classes is also reflected in property companies’ top three longer-term investment plans.

Over the next five years, 41% of respondents plan to increase investment into Build-to-Rent, 31% are targeting logistics and 30% are planning to upscale in life sciences.

Melanie Leech, chief executive at the British Property Federation, said: “While we are braced for 2023 to be a challenging year, those surveyed clearly believe that there is a positive outlook for the sector next five years, reflecting the cyclical nature of real estate and the property sector’s role as long-term investors in towns and cities.

“The sector is currently facing a perfect storm of pressures including cost inflation, skills shortages, and increased cost of debt but as economic conditions improve we should see activity rebound strongly.”

James Raynor, CEO of Grosvenor Property UK, said: “We shouldn’t be surprised that net zero is high on the agenda; addressing our carbon footprint isn’t just the right thing to do, the commercial and reputational case is increasingly clear.

“We’re already well on our way having reduced emissions by over 24% in the last two years.

“And with our pipeline of sustainable projects attracting premium rents, including our first net zero offices which will complete pre let soon, our early moves to do the right thing are supporting the business as the economy softens.”

 

Latest news

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
3 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
2 days ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
2 days ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
2 days ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
3 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
3 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
3 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
3 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
3 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
3 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
3 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
4 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
4 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
4 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
4 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
4 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
4 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
4 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
5 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
5 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
5 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
5 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
5 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
5 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
5 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
5 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
5 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
5 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
6 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
6 days ago

Contractor services