Later this month David Cameron will give his first speech on the environment since he became prime minister. He won’t mention property. He should.
The Clean Energy Ministerial conference takes place later this month. Energy ministers from 23 countries will gather in London. And a raft of announcements are expected, with a commitment from the prime minister to building a low-carbon economy likely to be at the heart of these.
So expect plenty on green energy and clean technology. But major announcements specifically on construction and development are unlikely. Maybe it’s the wrong environment, if you’ll pardon the pun. Nevertheless, I hope I’m wrong.
Because in the background a row is brewing. The Green Property Alliance claims schemes designed to ensure developments meet taxing environmental standards are resulting in buildings that tenants do not wish to occupy. The demands of modern occupiers for natural light and high-density workspaces, the alliance argues, are simply not possible in buildings able to earn a BREEAM Excellent rating.
How’s this for a damning assessment from Legal & General’s Simon Wilkes: “We are relying on different computer models that do not agree with each other, technologies that fight each other and an almost blind faith that the buildings will be understood and operated properly by their occupants.” Thankfully, sense is prevailing and BREEAM and the alliance are working to resolve these concerns.
So good sense from them. Good sense from government would be welcome too. Given that buildings are responsible for some 40% of the UK’s CO2 emissions, with business properties accounting for around half of that, it would be useful to see Cameron push property up his green agenda too.
Elsewhere, on the plus side, ministers are showing a willingness to tear up established thinking and embark on new courses of policy. On the downside, however, ministers are showing a willingness to tear up established thinking and embark on new courses of policy.
So while the chancellor’s mock – sorry, professed – shock this week over levels of charitable giving – and stated intention to undo an established philanthropic incentive – caused widespread dismay, let’s look for a positive. Perhaps now we may see fresh thinking over less well regarded policies too.
So might empty rates be in ministerial sights? Perhaps not yet. George Osborne’s charity u-turn was driven by a desire to bolster the public purse; undoing empty rates policies, however desirable, would hurt it.
But flexibility is emerging. Developers in Wales could be given a three-year reprieve from paying empty property rates. A report commissioned by the Welsh government is to recommend all new builds are spared the tax for up to three years.
There are conditions, of course. Properties would have to be built to the highest green standard, for example. But that’s only right.
On the face of it, such a policy seems workable, desirable and pragmatic. It shouldn’t hurt the public coffers significantly, it should limit the damage caused to property markets by empty rates policy and it will influence behaviour by encouraging sustainable developments.
From a Whitehall and Westminster point of view, this sensible initiative in Wales could then be watched as an unofficial pilot.
What’s not to like?
Congratulations to Savills. The firm has won in no fewer than six regions in this year’s Estates Gazette regional awards. After picking up the national Adviser of the Year trophy in last December’s Estates Gazette Awards, the firm is clearly doing something right. Other significant winners this year include Stoford and Wrenbridge, which each picked up a pair of regional Property Company of the Year titles.
For full details of all the regional winners turn to page 36. And for details of how to enter the national awards, watch this space.
