BREEAM Benefits

---

Research by Sweett Group BRE has shown ''lower BREEAM' rating can incur little or no additional cost.''

Targeting the higher BREEAM ratings, which equate with more challenging sustainability levels, is typically less than 2% uplift.

A report by BSRIA with Schneider Electric and supported by BRE, gathered clients' views on value. 49% of clients said they had incurred significant extra costs to reach their BREEAM target rating, while 41% said they did not.

Climate change and evolving regulation are posing increasing challenges for existing buildings and their owners and investors. Building that are not equipped for the future may face the risk of devaluation and could eventually become stranded assets. 

Assets falling below minimum standards may potentially be subject to a negative impact on collateral value and a consequent increase in the, loan to value ratio, meaning they are high risk.

The benefit of sustainable construction are received by different stakeholders throughout the building life cycle.

Investor:

- 21% premium on sale transaction prices

- 18% premium on rental rates

-  Developer/owner interest in benefit of sustainability

Source: Supply, Demand and the Value of Green Buildings.

More countries are introducing tax breaks for certified buildings

 Many governments has been encouraging mortgage lenders to develop green mortgage products. These are  cheaper mortgages which take account of the lower lending risk associated with more energy-efficient properties. 

 Lenders offering green mortgages either offer borrowers preferential terms if they buy an energy-efficient home, or if they commit to improving the efficiency of their current home. 

The benefits for Owners are mainly after handover:

- Reducing running cost in use.

- Shorter payback periods on investments

- Improved productivity of users

- Meeting corporate sustainability reporting