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The Financial Benefits of Green Building & Sustainable Design

Sustainable building development

In today’s property development landscape, integrating green building and sustainable design principles isn’t just an ethical or environmental choice; it’s a smart financial strategy. Green buildings reduce the overall impact of the environment, by incorporating energy efficiency, water conservation and air quality. For property developers, whether focused on residential development or commercial projects, the financial advantages of adopting sustainable practices are becoming more and more compelling and multi-faceted.

 

Reduced Operating Costs

Green buildings typically have lower operating costs due to their energy-efficient design. These structures often utilise advanced insulation, energy-efficient windows, and high-performance solar panels that significantly reduce energy consumption. According to studies, green buildings can see a reduction in energy use by up to 30-50%, leading to substantial cost savings over the life of the building.

 

Higher Property Value & Marketability

Properties with sustainable design features often yield higher prices in the market. Buyers and tenants are increasingly aware of the benefits of green buildings, such as lower utility bills, healthier living environments, and reduced environmental impact. This heightened demand translates into higher resale values and rental rates, ensuring a better return on investment for developers.

 

Increased Financing Opportunities

Financial institutions are progressively recognising the long-term value of green buildings. Property developers can often access more favourable financing terms for sustainable projects. Some lenders offer lower interest rates or additional funding options for developments that meet certain green building standards. Bridging loans and other property development finance options can also be more accessible for projects demonstrating a commitment to sustainability.

 

Attractive Incentives & Grants

Governments and local authorities frequently provide financial incentives to encourage green building practices. These can include tax rebates, grants, and subsidies aimed at offsetting the initial costs of sustainable materials and technologies. Leveraging these incentives can significantly reduce the upfront investment required for green projects, improving overall financial feasibility.

 

Enhanced Tenant Retention

Green buildings are often more attractive to tenants, particularly in the commercial sector. Businesses are increasingly looking to occupy spaces that align with their corporate sustainability goals. This can lead to higher tenant retention rates and reduced vacancy periods, ensuring a steady income stream for property owners.

 

Long-term Resilience & Risk Mitigation

Sustainable buildings are designed to be more resilient to environmental challenges, such as extreme weathers. By incorporating features like improved insulation, natural ventilation, and sustainable water management systems, these buildings are better equipped to handle the impacts of climate change. This resilience translates into lower repair and maintenance costs over time, further enhancing the financial stability of the investment.

 

Improved Health & Productivity

Incorporating green building elements like natural lighting, improved air quality, and non-toxic building materials can significantly enhance the health and well-being of occupants. For commercial properties, this can lead to increased productivity and reduced absence, making these spaces more desirable to businesses and organisations.

In conclusion, the financial benefits of green building and sustainable design are substantial. For property developers leveraging a range of funding options, from residential development finance to commercial development finance and bridging loans, incorporating sustainability into projects not only supports environmental goals but also enhances financial performance. By reducing operating costs, increasing property value, and unlocking new financing opportunities, sustainable development stands out as a wise and profitable investment strategy.

WHAT OUR CUSTOMERS SAY ABOUT US

"A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

“We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

“As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

“I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

"From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

“I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

“A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

“Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

“We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

“Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

“We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

“All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

“With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

“We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

“We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

“BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

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