Why is sustainable design more expensive?

Sustainability is one of the most vital topics in countless industries. There is more focus than ever on ensuring we do things that are good for the environment, especially in the face of climate change, extreme weather events, and natural disasters. However, in many cases sustainable design is more costly. We want to have a look at why and how we could improve it.

Higher costs

There have been some really big improvements in sustainability in the last few years. Crucially, there is more evidence now that reusing things like structural steel is viable. In addition, we've had numerous projects to show that reuse is possible, including retrofitting and changing the internal layout of properties. There are more innovative techniques and strategies to use than ever before.

The problem is reusing structural steel and retrofitting existing buildings is generally more costly. There are a number of factors that influence this.

In terms of steel reuse, the main problem is it requires you to carefully dismantle a current building. It's more expensive to do this than bulldoze the lot. So, whether you're looking to clear a site and reuse the steel or want to buy reused steel rather than new material, the costs can be higher. Consider this, especially if you're planning residential architecture.

There is another key cost with reusing steel; testing. Materials must meet high standards, ensuring they are safe to reuse. The requirements here can be very strict, especially for older steel.

The cost of innovation

It's also vital to keep in mind that doing something unique will always involve additional costs. You've got to do more on the design side to show it is even possible. Then, you have to prove it is safe. Finally, you have to find a way to do it, likely asking people to do so for the first time using new processes and techniques.

VAT

Retrofit projects in the UK also unfortunately generally have to pay VAT. This is true for residential architecture, including popular proposals like office to residential conversion. It means there is a significant financial disadvantage. New builds on the other hand are zero rate. Even with the Government trying to do more to encourage retrofitting by offering zero VAT for things like energy saving upgrades, the whole thing is incredibly complex. For example, if you get a new roof and insulation to improve energy efficiency, there will be a VAT bill.

Pushing for change

There have been several calls to even the playing field and encourage more retrofitting. Architects' Journal has a campaign to champion reuse. On top of that, MPs on the Environmental Audit Committee said there should be a VAT cut to make reusing existing buildings more viable financially. The Federation of Master Builders supports change too, claiming that reducing the VAT on labour for projects would create jobs and ultimate generate billions.

Additionally, there are calls to do more to encourage a reduction in embodied carbon. This includes things like mandatory reporting and backing use of low carbon materials. The latter could create a more robust market, helping to reduce the cost of things like reused steel.