Policy and regulatory uncertainty and a lack of financial incentives to support the retrofitting of buildings are hindering the property sector’s efforts in decarbonisation, a report by the British Property Federation (BPF) has found.

Without robust evidence of a return on investment, many property owners lack the confidence to invest in major energy efficiency upgrades, the BPF said.

The study, in partnership with JLL, has also identified lack of access to data as a major challenge, making it difficult for property owners and occupiers to calculate accurate operational carbon and set realistic carbon reduction targets.

The report reveals that nine in 10 senior leaders surveyed by the BPF and JLL do not believe current government policy will deliver a net zero property sector by 2050.

To ensure the property sector can meet net zero targets, the BPF has set out several essential policies. These include the following:

• Mandate the sharing of energy consumption data between property owners and occupiers of large commercial buildings, and set up a task force to explore the particular data challenges faced by owners of residential buildings

• Confirm urgently the details of the proposed new performance-based energy rating system

• Zero rate VAT on residential repairs and maintenance and reform capital allowances to incentivise investment to decarbonise

• Move towards the mandatory installation of PV and/or green roofs on large residential, commercial and public buildings

Melanie Leech, BPF chief executive, commented: “The property sector is fully committed to decarbonisation but there are huge barriers and costs to overcome. We need clear long-term policies, regulation and incentives to support the industry’s efforts.

“We urge the government to adopt the policy recommendations in this report and to work with us to make sure we can deliver a net zero built environment by 2050.”

 The British Property Federation launched its Net Zero Pledge, an industry-wide initiative to cut carbon emissions across the whole of the property sector, last year.