GREEN IS GOOD

The colour green has positive associations. Not only X-mas trees, but money, permission to go and of course those pastures which are always greener at least until you get to them.

Green is also the short hand description for environmental sustainability in property. But what does this mean? It really boils down to how much energy a building uses (also measured by carbon output). This is a function of design, the quality of the mechanical and electrical plant and also how a building is used, once construction is finished.

So how green is a building? Does it matter? If you are intending to buy a property or even just occupy one, should you think about its sustainable qualities?

YES!

If nothing else, a more energy efficient and greener building has lower running costs. It is almost certain to be taxed less in the future than comparable buildings. Already many large corporate occupiers and also the government will not even consider a building which does not have very high sustainable qualities.

Buildings with green credentials will, will as a result, keep relatively higher capital values.

You may not agree with Climate Change or the cause of it. However Europe and the UK government are committed through legislation and PR to ensure that both residential and commercial property use a lot less energy than every before. There is also a parallel effort (probably less effective) to produce energy through the use of Renewable Energy such hydropower, geothermal, tidal, solar, wind and bio-mass.

I believe that the targets for reduction in energy usage and increased power production by renewable sources - if viewed honestly - are unachievable in financial and timetable terms. Nevertheless the government is committed to them through the latest Copenhagen summit and a whole raft of legislation over the past few years. Their delivery plan can be loosely described as Carrot and Stick.

The Carrot has been of limited use and really relates more to "domestic" sized properties with grants, planning exemptions and rebates being available for insulation, solar panels and the like,

The Stick is already the main tool of government and its influence will be growing. For example;

- Legislation through the planning and building control laws is already
making new development and also refurbishment of existing commercial
property more expensive and time consuming.
- Always increasing taxes on landfills, materials and energy.
- Future taxes, probably via business rates and linked to the recently introduced
Energy Performance Certificates. More energy efficient buildings will pay less tax.

Existing buildings will be particularly hard hit financially as building regulations require compliance with the latest standards on air tightness and thermal performance even if you are simply renewing the air conditioning. Please note that it is almost impossible to get the same performance in an existing building as in a new one which has been built under that latest standards as required by building regulations.

Have a look at the BREEAM web site (www.breeam.org.uk) or go to the research pages of any large surveyor such as King Sturge, CBRE, Cushman Wakefeld, DTZ who are already advising their institutional sized clients on sustainability. The RICS has also finally made a move with respect valuation. Also look at the statements by all three political parties in respect of energy use and property. I am happy to provide specific references and links.

If you want preserve the capital value of your property and continue to keep your running costs to a minimum - think green.