Sustainable benefits of housebuilding support the ESG agenda

Whilst there is much talk from the UK and Scottish governments of challenging times ahead, the cost-of-living crisis and recession, the focus amidst the rather gloomy announcements should be a constructive debate about mapping a way ahead.

Key to that is a plan to deliver growth to GDP growth in a sustainable manner that supports our net zero objective.

Those in charge of policymaking ought to consider not only the significant economic and social welfare benefits of providing housing to meet the significant shortfall that currently exists across the UK, but also that new homes are ready for net zero.

As well as offering significant savings through greater energy efficiency, new homes are also future proofed against pending legislation that is likely to require new tenancies in the private rented sector to have a minimum energy performance certificate (EPC) rating of C. Recent analysis has suggested there is significant cost involved in retrofitting older properties to meet these future EPC requirements. With rising interest rates, we will see increased demand for private rented sector properties and increased investor appetite to provide them - a demand best met by energy efficient new homes if we are to keep our net zero requirements on track.

The residential sector has a key part to play in achieving the UK net zero target. Mindful of this, consumers are increasingly conscious of their homes’ green credentials. The fact that these green credentials will mitigate the impact of tougher times ahead should influence policymaking. There is a compelling argument for more housebuilding that will deliver sustainable economic benefit to support the ESG agenda.

A recent publication by Homes for Scotland highlighted that in in the year prior to Covid, £1.8bn of economic output was generated by the construction of new homes. This is only part of the equation. The same report highlighted that the sale of new homes generated £21m in LBTT receipts and £2.6bn of council tax each year - much-needed cash in times of austerity that can help shelter those worst affected by the current crisis.

Let’s hope for some more informed decision-making in the months ahead and a brighter outlook for the new year as we continue on our collective journey to net zero.

As a business, Burness Paull is heavily invested in the housebuilding sector and remains firmly focussed on our own ESG agenda. Read our recent sustainability report here.