Opinion: Hannah Leslie

Homes make up 15% of the total greenhouse gas emissions in Scotland, and at Springfield we have long recognised our responsibility to reduce this output. There is an ongoing debate in housing over what needs to come first to allow further progress in the delivery of low carbon homes to be made: Government regulation; housebuilder innovation; customer demand; and/or something which is arguably interlinked, financial incentives.

In Scotland, homes are built to some of the highest energy standards in Europe because of the ambitious targets set by the Scottish Government. The main advantage to delivering increased energy standards through the building standards system is that it creates a level playing field, with all new homes having to comply when home builders are bidding in a competitive land market. Changes through building standards allow housebuilders to adjust the design of their portfolio of homes. Changes through planning policy, however, are less helpful and risk 34 different approaches being implemented by planning authorities.

Particularly in the affordable housing sector, there are examples across Scotland where housebuilders have used innovation to improve the green credentials of new build homes. Our aim with every development is to create a place people are proud to call home, with properties that are as environmentally sustainable as possible, and we are constantly exploring new ways to achieve this. These have included making the infrastructure for charging electric cars a standard feature, using recycled materials to create a waste plastic road, and strategically using air source heat pumps as a greener alternative to gas.

Whilst demonstrably there is room for innovation in housebuilding, it must be acknowledged that there are constraints. The first, mentioned above, relates to the competitive land market and the impact of higher build costs on the viability of sites. Secondly, and most crucially, builders must construct homes which warranty bodies are happy to accredit, which surveyors are happy to value and ultimately which mortgage lenders are happy to lend on. In many ways this is why we have seen more innovation in the affordable housing sector. There are a lot of ducks that need to be lined up before a company can risk being a leader in innovation in the new build for sale market.

Customer demand has probably advanced the least, with market evidence suggesting that location and layout still feature much higher on a home buyer’s shopping list. If there was an increased demand for greener homes, this would inevitably drive the market. At the minute, with more people spending time at home, and in many cases working from home, it will be interesting to see what impact the higher energy usage, and in turn the more expensive utility bill, will have on customer behaviour and the demand for greener homes. Across the Springfield Group we are already seeing a stronger draw to larger homes, with gardens and access to green space, as a consequence of COVID lockdowns. Is it possible that people will also start being more aware of the running costs and demand a more efficient home?

When buying a car, we tend to have more awareness of the efficiency of the vehicle than we do when buying a house. This is likely to be directly linked to the cost of road tax and the cost of filling up the tank. With that in mind, financial incentives, such as reduced land and buildings transaction tax, or even council tax, would help raise awareness of energy performance certificates and, in turn, increase the customer demand for better, more efficient homes. “Green mortgages” have been referred to for years, but are yet to become mainstream. If lenders were to promote specific products with affordability assessments which took into account the lower running costs of an energy efficient home, then customers would have a direct advantage from choosing “green”.

As we begin to emerge from one of the most difficult periods in generations, we should reflect on better, greener ways to live our lives. Housebuilders have a role, and as one of Scotland’s leading housebuilders we are very keen to play our part, but as explained we are only part of the picture.