The cost for developers of meeting the government’s zero carbon targets could reach £36,000 per home.
According Knight Frank and EC Harris’s Eco-homes, economically sustainable? report, a “key issue” in meeting the government’s sustainability targets will be the cost escalation from a “relatively painless” Level 3 to Level 6.
Nevertheless it predicts that the supply of technology could drive costs down over time.
Government targets expect developers to reach Level 3 of sustainability by 2010 and finally Level 6 by 2016, which means schemes must be completely carbon free, with renewable energy sources being provided either on or off site.
KF and EC Harris estimated that to reach Code Level 3 would lift construction costs by £5,000 per unit for houses, £3,500 for low-rise flats and £6,500 for high-rise flats.
To reach Level 6 would increase developer by at least £26,000 per unit for housing, £34,000 per unit for low-rise flats and £36,000 per unit for high rise flats, although the report has not said an exact figure because it says there is “still some doubt about the availability of technological solutions to achieve true zero carbon compliance.”
The report conducted interviews with 45 UK homeowners.
87% questioned would not oppose green measures being put in their homes, and 86% wanted more information on the impact of environmentally friendly measures in homes.
Nearly two-thirds said they would be willing to pay premium rates for an eco-home.
Liam Bailey, head of residential research at Knight Frank, said: “Over the next decade we expect to see the three strands of eco-awareness, design quality and place making, combining in terms of market placement – the key for developers is to ensure they are able to capitalise on these themes.
“However in the short-term the slow down in the housing market is causing many, especially first time buyers to put affordability above environmental priorities.”
