Four years and counting

Four years remain to achieve the Government target that all new homes from 2016 should be built to a Code for Sustainable Homes (CSH) ëzero carboní rating. Zero carbon was originally defined by a CSH level 6 rating, however following the March 2011 Budget it is now equivalent to level 5. (NHBC, 2012) Since its introduction in April 2007 less than 100 private sector registered dwellings have received a CSH Post Construction Stage level 5 or 6 rating. (DCLG, 2012) An independent report commissioned by the UK Government (Callcutt, 2007) claimed: Without [UK] Government intervention, it is unlikely that the majority of house builders -left to their own devices - would do much to deliver any form of sustainability. Unless and until house buyers are prepared to pay a premium for quality and sustainability that would make such a product cost effective, it would not be in the financial interests of any house builder to adopt such initiatives unilaterally. RICS is calling for residential property valuers to be fully aware of sustainability characteristics and consider these when undertaking valuations. (RICS, 2011) The National House Building Council (NHBC) also recommends that valuers and lenders place a premium on new houses that reflect sustainability characteristics. (NHBC, 2012) Is price differentiation alone enough to meet the 2016 zero carbon rating target or will further Government intervention be required. This research will include an empirical study of private sector new homes built in England, taking a geographical analysis and the observed impact on selling price of sustainability credentials as categorised under the CSH. The study will use hedonic and conjoint analysis techniques to isolate the effects of different building characteristics within different regions on property prices. The research aims to add to the property market knowledgebase for valuation professionals.