Three tips for cost-effective sustainable development

Sustainability is becoming more and more important to developers – particularly because sustainable practices are now enshrined in policy. 

But what exactly is sustainable development? 

If you look at the National Planning Policy Framework, it talks about sustainable development being able to cater to the needs of the present without compromising the needs of future generations.

In our webinar with Paul Higgs, Founder of the Millbank Group, he shared his thoughts on what sustainability means for the industry: 

“In short, it’s really thinking long-term about what we’re doing and how we are doing it.” – Paul Higgs

During the session, Paul also delved into how developers can be sustainable, whilst still remaining profitable. Below, we share three tips for how to be more cost-effective and sustainable. 

• Think about the bigger picture

Sustainability extends beyond just the performance of buildings. The entire site needs to be considered to maximise the opportunities for environmental good. 

Paul shared an example of a project he’s currently working on where the big focus is on landscaping and increasing the biodiversity potential, all while cleaning up contamination. As a result, they’ve reduced the footprint of the site by 80%. 

Considering the bigger picture green credentials can also be helpful when it comes to getting planning permission on your site. 

Often, sustainable measures (like a 10% increase in biodiversity net gain) are included as a requirement in Local Plans – meaning it’s no longer a nice-to-have – but an essential. 

• Combine technology and design

Technology and design need to work hand-in-hand to create homes that blend in and positively impact the natural environment. 

“If you want to create developments that are as sustainable and profitable as possible, you really have to be detailed.” – Paul Higgs

There are still a lot of people who don’t want new housing built near where they live – having carefully considered designs can help minimise the chances of objection. 

Therefore, exterior design should incorporate biophilic concepts (increasing connectivity between people and nature) and use natural materials that align with the landscape. 

On the inside, sustainable tech can be used to make a home well-insulated and able to retain as much heat as possible. 

Solar panels, heat pumps, and innovative new water tank technologies can make a home cheaper to heat and reduce carbon output. 

Energy efficiency and renewable sources are a big sell for buyers, so should be a priority for developers. 

• Get the balance right

Incorporating net-zero materials and increasing the biodiversity of a site is still an added expense, so how do you maximise land value to get the deal done, whilst still being sustainable?

If you go above and beyond what is needed, it can increase costs and reduce residual land value – which in turn makes it harder to compete. This can be particularly tricky to navigate if the development project is a joint venture as there are often stipulations that the development be built in the most cost-effective way. 

A key question for a lot of developers is:

“Where do you spend the money and are you going to get it back? And also you have to think about the detailed design, the environment, the locality, and the character.” – Paul Higgs

A lot of the costs around sustainability aren’t generally recoverable in terms of increased value, so you need to be smart and focus on materials that are sustainable but are also going to add a premium to the Gross Development Value. 

For example, with rising energy costs, energy-efficient homes make sense from a sales and marketing perspective as they can increase saleability and speed up the sales process. 

Find out more in our on-demand webinar

Catch up on more insights in our on-demand webinar – How to build sustainable and profitable developments. 

During the webinar, Paul discussed: 

• Recent changes to the sustainability sector
• Key challenges facing developers
• Getting planning for sustainable projects