Here, our experienced team of property finance professionals define sustainable and green property development. They will explain the benefits and reveal how you can secure specialist finance to help fund such projects.
Sustainable property development defined
Sustainable property development is the process of building/refurbishing a property or plot of land using techniques that minimise the project’s carbon footprint. This could include eco-friendly design, technology, or infrastructure.
These sustainable practices will be made based on some key principles:
- Energy efficiency – Minimising the amount of energy required to do the work and to power the building once complete.
- Resource conservation – Minimising the use of natural resources and the impact on surroundings e.g. through the amount of waste generated. This could also include the use of recycled or reusable materials in its construction or ongoing maintenance.
- Air quality – Purifying the air using ventilation, filters, and non-toxic materials for improved health.
- Community consideration – Thinking about the surrounding community and infrastructure, such as ensuring green space or renewable energy options.
Is sustainable building different to green property development?
Generally, the terms ‘green’ and ‘sustainable’ are used interchangeably to refer to being more eco-friendly and conscious of your impact on the world. However, there is a distinct difference between their meanings.
‘Green’ means to minimise environmental impact by using products or services that are responsibly sourced and cause no or less harm.
‘Sustainable’, on the other hand, is a bit broader. It considers environmental and social aspects that can affect the landscape, people, and animals long-term, protecting resources for future generations.
Therefore, being ‘green’ can be considered a part of a sustainable project.
Why build sustainably?
There are new materials, technologies, and methods constantly being innovated. These can make sustainable property development more efficient and greener, but sometimes come at an additional cost to more traditional options.
However, investing in sustainability can have great advantages to the planet, you, and the end users. The benefits of sustainable property development include:
- Higher property value – Eco-friendly homes are becoming increasingly popular and demand outreaches supply. Therefore, sustainable developments often demand higher property values, especially if you can secure certifications to prove the property’s credentials.
- Tax incentives and grants – The UK government has pledged to build more homes and have environmental targets. To hit these goals, there are numerous incentives for building sustainably, such as tax credits and deductions, and even funding grants.
- Energy savings – Long-term, sustainable properties will be more energy-efficient. This means the end user can significantly save on utility bills. Electric vehicle charging points could also save on fuel.
- Reduced environmental impact – Construction and operation impact is reduced, so sustainable projects are kinder to the planet.
- Better health – There is less risk of respiratory problems and other health issues associated with poor air quality or toxic material use.
Raise your sustainability credentials with Phoenix Funding
If your next project will provide environmental benefits, you could be eligible for a green or sustainable loan. These are specific types of funding that incentivise performance targets, often by reducing interest rates or offering a larger loan amount.
To find out more about these possible preferential terms and how you can source the funding you need to make your next development happen, get in touch with the Phoenix development finance team today!
With up to 70% GDV over 18 months for commercial or residential projects, a bright future and certainty of funds await.