In a busy end of the year for politics and policy, do developers and clean heat advocates have a lot to feel good about? Alastair Murray, founder and MD of Rendesco, explores
In a busy year for policy, the last few months have perhaps been the busiest.
Party conference season was quickly followed by a jam-packed November with a dramatic reshuffle, the announcement of the Government’s pre-election legislative agenda via the King’s Speech, and the Autumn Statement.
Many across the industry will have noticed that amongst the plethora of policy announcements, there was little regarding clean heat.
New green housing projects are on the rise
Despite challenging market conditions, new green housing projects have been quietly accelerating.
This may come as no surprise given the common trend of ministers chopping and changing previously announced policy, coupled with persistent indecision around key policy areas such as planning and nutrient neutrality.
In light of this then, what should developers take away from this, and should they feel down-beat?
Despite a coherent government strategy, sustainable building is on the rise
As we head into 2024, there is good cause to be optimistic as we can recognise the significant efforts that the industry is making to build sustainable homes, in the absence of a coherent strategy from the government.
The ongoing redesign of homes to accommodate heat pumps and bolster insulation demonstrates an industry-wide readiness to respond to this demand also, and not just meet evolving sustainability standards, but to exceed them
A pilot project by Countryside Partnerships in Bristol, with support from Rendesco – a developer and installer of ground source heat networks- represents this approach in action.
The entire project, from inception to construction, was designed with a ground source heat network in mind.
Thereby, ensuring that future residents will always have a reliable supply of low-carbon and affordable heat and hot water, which will eventually be entirely carbon-free once the nation’s electricity supply is decarbonised completely.
Eco-homes can have up to 12% added to their value
There is a clear commercial incentive for developers to embrace sustainable homes, with a recent study from Savills showing that eco-homes can have up to 12% added to their value, underlining consumers’ appetite towards clean, heat and energy-efficient homes.
Whilst the government might be sending mixed signals, influential institutions which guide and direct official policy, certainly are not.
The National Infrastructure Commission’s recent report emphasised that the vast majority of Britain’s homes would be supplied with heat and hot water from electrified forms of heat via heat networks and heat pumps.
Other strategies, such as hydrogen, were definitively dismissed as well.
A lack of direction is slowing the sector’s transition
Clear evidence like this is increasingly giving housebuilders confidence that the decisions and investments they are making are the right ones, in the absence of any clear government guidance.
Nevertheless, a lack of detail and direction from Whitehall is slowing down the sector’s transition.
A majority of new-build homes are still being fitted with gas boilers, despite a plethora of low-carbon alternatives being readily available.
Ultimately, government inaction won’t stop the sector’s progress due to an abundance of evidence and incentives which are giving developers confidence.
Yet the pace could be faster, and that is where the government could, and should, be doing more.
Alastair Murray
Founder and MD
Rendesco
