Over a third of landlords will push back energy efficiency measures due to government flip-flopping on the issue.
Research commissioned by tax and consulting firm RSM UK shows that 35 per cent of businesses will roll back action to meet ESG goals due to last year’s government announcements to delay deadlines for several low-carbon targets.
In addition, nearly one quarter of UK landlords think that the real estate sector is currently not making quick enough progress to reduce its carbon footprint in line with the government’s target net zero emissions deadline.
Additionally, half of landlords think that the sector is making little or no progress in effectively developing and implementing environmental, social and governance policies, slightly down from 55 per cent the previous year.
A large majority (82 per cent) agree that real estate businesses need to have strong environmental credentials or plans in place in order to access financing from lenders, yet more than a third of landlords see access to funding as the second highest barrier to investment.
Landlords perceived the biggest barrier to de-carbonising the real estate sector to be lack of cost-effective tech solutions, lack of landlord willpower to invest in environmental solutions and the impact of the energy crisis.
A spokesperson for RSM UK says: “The government’s flip-flopping of its net zero targets is problematic for the real estate sector, and it is no surprise to see landlords pushing back plans against the revised targets. However, taking the foot off the gas now will slowdown progress and create an even bigger barrier to finance in the future if credentials slip.
“This highlights a disconnect between industry and policymakers, and signals a real need for collaboration to ensure real estate remains at the forefront of driving the UK’s transition to net zero. But, this will require investment to develop new technology to create green solutions and upskill workers – which is challenging given the volatile economic climate and the impact of the energy crisis.”
