Wed 16 Apr 2008
New government approach to development funding required
A radical approach to development funding is needed following the government’s announcement of its shortlist for creating ten eco-towns, according to Yolande Barnes, director of Savills research.The government’s attempts to ease the housing shortage by creating ten carbon-neutral settlements across the country by focusing on developing “sustainable principles,” means that much of the money invested will only be realised over the “medium to long-term,” warns Barnes.
“This does not suit the shorter term approach of many developers and their shareholders particularly at a time when funding is in crisis,” says Barnes. “The creation of new, longer term investment vehicles and mechanisms is required combined with a ‘cultural shift’ by developers towards timescales to enable investor/landowner participation over the entire development period and possibly beyond.
“Our research shows that householders do consider energy efficiency issues to be important but few are prepared to pay more for homes with measures to reduce environmental impact. They are more motivated by saving money than saving the planet. This currently presents developers with a real problem in how to bridge the cost/value gap associated with sustainable homes.”
What is your definition of a ‘sustainable’ eco development? Can a scheme of this nature be environmentally friendly and carbon neutral, as well as prove sustainable in the long-term? Have your say!
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