Net Zero target out of reach without financial help, say industry leaders

A deadline of 2050 to achieve a carbon-free property sector will not be met unless there are policy changes, the Government is warned.

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Most senior property managers say it will be not be possible to achieve Net Zero by 2050.

Nine in 10 sector leaders surveyed by the British Property Federation and JLL do not believe current Government policy will deliver a carbon-free property sector in less than 30 years.

Many property owners lack the confidence to invest in major energy efficiency upgrades without robust evidence of a return on investment.

And a lack of financial incentives to support the retrofitting of buildings is hindering progress, the study found.

The Neg reported warnings last week that there will be a mass exodus of landlords from PRS due to the cost of ensuring properties achieve a minimum C EPC rating.

To ensure the property sector can meet net zero targets the BPF has set out several essential policies, which include urgently confirming the detail of the planned changes to the MEES regulations for PRS, and the details of the new EPC energy rating system.

Melanie Leech, CEO, BPF

Zero rate VAT on residential repairs and maintenance and reform capital allowances to incentivise investment to decarbonise, are also recommendations.

Moving towards the mandatory installation of PV and green roofs on large residential buildings, is also needed.

“There are huge barriers and costs to overcome.”

Melanie Leech, CEO at BPF, says: “The property sector is fully committed to decarbonisation, but there are huge barriers and costs to overcome.

“We need clear long-term policies, regulation and incentives to support the industry’s efforts.”

Guy Grainger, President, BPF

Guy Grainger, President of BPF and global head of sustainability services & ESG at JLL, says: “There is no denying that the real estate industry is committed to net zero, with pledges being made at a global, national and local level, but these pledges need to be turned into credible action.

“Without clear incentives and regulation from Government we will continue to fall short of targets.”

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