Economics; Review of an Article

Danielle-Louise Reid
Surveying BSc (Hons)

10 Point Summary
The main argument the RICS have is that for the economy to recover after the recession, small and medium-sized businesses must be noticed and given equal opportunity A cut in VAT by as small as 5% would be of benefit to the industry Empty Property Rates Relief* should be put in place as this will help to stimulate the economy The lack of availability for mortgages and loans are an issue which must be resolved Existing infrastructure must continue to be maintained and new must be delivered where needed The government are considering guaranteeing first times either a reasonable deposit in return for a stake in their property Issues outlined in this 2012 Budget Submission are similar to those highlighted by Sir Michael Latham in his 1994 report Constructing the Team There has been an increase in demand for social and affordable housing which must be met in terms of supply by the Government and housing associations RICS is in favour of the governments main focus on the delivery infrastructure but want to ensure not only large contractors are used In terms of sustainability, businesses working from sustainable buildings achieve a higher turn-over than those non-sustainable.

* Empty Property Rates Relief this was set up in order to try and help alleviate the cost of having to pay rent by businesses whose properties are empty. Without the RICS say it will damage growth.

Economic Review
Alongside weather, the economy is one of the most common topics discussed by the Great British public. Each day the price of petrol, food or houses are commented on and analysed. In 2008 the economy took its biggest downturn since World War 2 which led to the collapse of major banking group Northern Rock. This created stress on many markets in Britain, especially those dealing with infrastructure and housing as there was a lack of money to provide mortgages for buyers and loans for developers. The government also found it very difficult to directly fund any of the housing projects that they were planning, resulting in a massive shortage of affordable housing for first time buyers or those with limited income. 4 years on from the initial downturn, the market is looking a little brighter and recommendations have been made by the RICS, as outlined in their 2012 Budget Submission to the HM Treasury, on how the market can improve even more and gain stability similar to that pre-2008. The RICS (Royal Institute of Chartered Surveyors) highlighted in their 2012 Budget Submission that small to medium-sized businesses are "vital in driving economic recovery"[1] as they are able to provide similar expertise and better value for money in construction projects, both in the private and public sectors. In order to immediately help these businesses win contracts against larger competitors "a 5% cut in VAT and reinstatement of the Empty Property Rate Relief (EPRR)"[2] would help. The cut in VAT would alleviate pressure for smaller businesses who may not be VAT registered therefore unable to claim this while pricing a job, therefore this would have to come from profits. The reinstatement of EPRR would allow smaller firms to continue working even in the event of an empty property, which they are unable to pay rent for. Small businesses are vital therefore these changes would "kick-start the economic recovery"[3]. The report entitled Constructing the Team[4] by Sir Michael Latham c/o Dept. of Environment, also noticed small businesses as an valuable asset and noticed 35,000 small businesses have become insolvent(1994). This although 14 years before our most recent economic downturn, may have been a starting factor, if it was not resolved, as the public and private sectors would then have been paying higher prices from the larger contractors whom still remained in the playing field, which over a number of years will have caused the financial position of both sectors to dissipate. This realisation that smaller contractors offer the same, if not a better quality of work at a lower cost, will have allowed construction work to continue similar to that pre-2008 while giving the economy room to recover. The savings made by the government in particular will create a healthier cash flow, which in turn should help them to recover.

[1],[2],[3] RICS (Royal Institute of Chartered Surveyors). (2012). Budget 2012: RICS Submission to HM Treasury. Available: http://www.rics.org/site/download_feed.aspx?fileID=11263&fileExtension=PDF. Last accessed 12 March 2012. [4]Sir Michael Latham c/o Dept. of Environment (1994). Constructing the Team. London: Stationery Office Books. 18.

In the private sector the RICS revealed that a cut in current VAT levels would also help to stimulate the economy. They say that the 5% cut would help renovate approximately 20,160 homes per year, which by the year 2020 could see up to 181,000 extra social homes being brought back to Governments Decent Home Standards[5]. As the price of goods and services are increased during the recession to help pump capital back into the economy, income for the UK citizen stays at a constant, therefore private housing becomes out of budget and less affordable. More and more people are therefore opting for more affordable homes i.e. social housing due to the price being lower. This is a prime example outlining the demand theory for this type of housing in the UK. (see figure 1, page 4) As described by Danny Myers in his book Surveying For Construction [6], demand for social housing increased in the UK during the 1980s and 1990s. Table 4.3 from his book lists the main factors affecting the demand for social housing. One point outlined is the price levels of other forms of tenure[7]. Another point raised by Myers is the availability of finance, such as income support and mortgages[8]. In the RICS 2012 budget submission mortgage availability is discussed and the point is made that RICS members are clear that a lack of mortgage availability is the fundamental issue holding up the market[9]. In saying this, the RICS also stated that they did not want to see lending levels to match that pre-2007[10]. The way to avoid this is not to carry on giving out mortgages which would not benefit the banks or building societies on their way to recovery, but would be guaranteeing first-time buyers a reasonable/low deposit in return for a stake in the property[11]. If the government were able to offer this then they would be able to allow far more people the chance to buy and own their own home, resulting in market stimulation. They would also benefit from the investment of having a stake in the property, which could be used to fund the 500bn which is needed to improve existing and build new infrastructure [12], a job which must be done regardless of the governments finances. In conclusion, the 2008 economic downturn is still affecting us today; with an increase in VAT and the housing market still not fully on track, but reading the issues raised and the recommendations which were then made by the RICS in their Budget [12], the future looks bright for the economy. If a 5% cut in VAT was to be made, not only developers and contractors would feel the benefit, the UK public would to, as goods and services would become slighter cheaper meaning they are able to save money and eventually get back onto the property ladder which would help the housing market to grow as prosper. The initial focus though, should be on small to medium-sized businesses as they are the driving force vital to the market recovery due to being able to offer essential and everyday good and services such as house building at a lower cost with no quality or expertise lost.
[6],[7],[8] Myers, D (2008). Surveying for Construction; a new approach. 2nd ed. London: Taylor and Francis. 60-61 [5],[9],[10],[11],[12] RICS (Royal Institute of Chartered Surveyors). (2012). Budget 2012: RICS Submission to HM Treasury. Available: http://www.rics.org/site/download_feed.aspx?fileID=11263&fileExtension=PDF. Last accessed 12 March 2012.

Figures and Diagrams Demand curve for Housing in the UK

1200 1000 800 600 400 200 0 1 2 3 4 5 6 Quantity 7 8 9 10 11 The demand curve shows the fact that as the price is low (for a social house) the demand increases. Reasons for this is that during the recession there increase in house prices and the non-movement/decrease of income meant that private houses were difficult to afford therefore the cheaper social houses became more affordable and the demand increased. Price In the context of the article this represents the price of private housing.

Figure 1 Graph showing demand curve.

References
Article reviewed RICS (Royal Institute of Chartered Surveyors). (2012). Budget 2012: RICS Submission to HM Treasury. Available: http://www.rics.org/site/download_feed.aspx?fileID=11263&fileExtension=PDF. Last accessed 12 March 2012. Other References Myers, D (2008). Surveying for Construction; a new approach. 2nd ed. London: Taylor and Francis. 60-61 Sir Michael Latham c/o Dept. of Environment (1994). Constructing the Team. London: Stationery Office Books. 18.

Article Reviewed
Budget 2012: RICS Submission to HM Treasury The Royal Institution of Chartered Surveyors (RICS) is the worlds largest organisation for professionals in property, land, construction and related environmental issues. RICS members are involved in every aspect of the built and natural environment, including planning and development, valuation, managing public and private sector assets and investment advice, acting for major urban and rural property owners and occupiers, and planning and delivery infrastructure projects. RICS regulates and maintains the professional standards of over 91,000 qualified members (FRICS, MRICS and AssocRICS) and over 50,000 trainee and student members. It regulates and promotes the work of these property professionals throughout 146 countries. RICS is governed by a Royal Charter which requires it to act in the public interest offering independent and apolitical expert advice. Commentary Only three months on from the Chancellors Autumn Statement and the Governments Housing Strategy, the sector is already sceptical about whether these initiatives can deliver the infrastructure and housing required. The RICS Construction Survey Q4 2011 showed an industry whose recovery is continuing to stall and which is sceptical about whether the Government would generate sufficient institutional funding for infrastructure projects in the UK. The Government must quickly implement measures that stimulate demand and kick start the sector in the short term and ensure the delivery of promised infrastructure and housing as quickly as possible in the medium to long term. Immediate measures to help small business compete with the larger players, a cut in VAT to 5% and a reinstatement of Empty Property Rate Relief will support longer term measures to leverage in the investment from the private sector that the UK needs to deliver the infrastructure, housing and jobs needed to kickstart economic recovery. Measures to help small to medium size businesses 85% of RICS UK members work in small to mediumsized businesses. The growth of these businesses is vital in driving economic recovery. Whilst RICS strongly welcomes the Governments focus on infrastructure delivery as a key driver of economic growth, care must be taken to ensure projects do not focus on large contractors or those contracts already in place. Small to medium size business can often offer better expertise and value for money. The RICS Construction Market Survey Q4 2011 showed that there are no signs that the pressure being felt by the SME sector is lessening. Indeed, a small majority of respondents see recent government initiatives as being, on balance, unhelpful for this segment of the industry. RICS fully supports the Governments contractorled and integrated approach to public sector procurement as outlined in the Construction Strategy. RICS recognizes that as the Strategy continues to evolve and simplify procurement processes, it may change the way that small business interacts with Government and provide opportunities in integrated teams.

RICS considers that there are a number of immediate measures that Government can take to help create the conditions to allow these businesses to innovate and thrive. RICS recommends: Government to act as a guarantor for smaller developers to allow them to compete for the Get Britain Building fund. The RICS Construction Market Survey Q4 2011 showed that the industry as a whole is sceptical about the impact this will have, with the majority of respondents believing it will have little consequence for the sector. One way of improving participation in the scheme and impact in the market would be measures to help smallmedium size developers take part. Whilst in theory the scheme allows developers to compete on a level playing field, in practice, the cost of insurance provision makes this impossible for all but the largest developers. By guaranteeing insurance provision for smallmedium sized developers, Government would allow these smaller developers to compete with the larger developers, potentially providing greater employment in areas that need it most. This would be a nominal cost to Treasury. Public sector procurement must be more open to smaller firms by allowing more flexibility in public procurement tenders in assessing risk and reexamining PreQualification Questionnaires (PQQs) Most public sector procurement tenders stipulate that the job must represent no more than 20% of the bidder's turnover. This excludes many smallmedium surveying businesses providing specific, often niche, expertise at often better value for money than bigger firms. Allowing more flexibility in tenders whilst maintaining reasonable risk assessment would give smaller firms opportunity to compete. Ensuring that PQQs assessment of risk is flexible would allow small firms to demonstrate their ability to complete the job. Extending central government's implementation of a 10day payment period under the Prompt Payment Code to all public procuring bodies and their clients Late payment has a ripple effect throughout the economy, particularly for small businesses who do not have large cash reserves. 38% of FSB members that are paid late say they then pay their suppliers late. The Government's commitment to pay all invoices to small businesses within 10 days is a welcome step forward but this must be extended. Another measure could be including an assessment of evidence of prompt payment in PQQs for public sector contracts. Government should be encouraging banks to work in partnership with all property developers and construction firms to develop new projects. Delivering institutional investment in the residential sector

The reforms to REITS announced by the Government in the draft Finance Bill in December 2011 are a positive step forward in creating the conditions for the sector to begin delivering ResiREITS in volumes that will make a real impact in the market. To a certain extent, it is now up to the sector to get things done. There is still a low knowledge base in institutional investors about the returns residential can offer. RICS uniquely covers both sectors and there is a role for the organisation to play in educating these sectors. RICS would be pleased to discuss with the Treasury how this could be taken forward with Government support. There are a number of measures RICS urge the Treasury to introduce to further create the conditions where REITS can be done and deliver the largescale investment in housing required: Providing tax relief on residential properties with longterm Assured Tenancies would encourage institutional investment in the private rented sector by providing certainty for investors Government should level the playing field between commercial and residential to encourage investors to consider investing in residential: o Reduce VAT to 5% for maintenance in line with commercial o Improve capital allowances for spending on residential property VAT VAT reductions in the housing repair and improvement market Cut the VAT research1, cosponsored by RICS, cites the following evidence that a cut would stimulate the economy: Provide a total economic stimulus in the region of 1.7 billion in 2012 alone, rising to over 20 billion by 2020. Create 26,650 jobs in the construction sector, as well as an extra 34,400 new jobs in the wider economy in 2012. A cut to 5% would create an extra 100,600 jobs in the UK by 2020. Create an extra 3,625 construction jobs in Scotland, 1,461 in Wales and 572 in Northern Ireland by 2015. Release an extra 374 million a year to improve the UKs social housing stock, which required a total expenditure of 7.9 billion in 2010. Help renovate or bring back into use approximately 20,160 homes per year over the next decade, by 2020 this could see up to 181,000 extra social homes brought back up to the Governments Decent Homes Standard. Stimulate additional spending of around 1.45 billion on energy efficiency measures over the decade, which could result in over 163,000 extra homes installing double glazing, insulation and energy efficient boilers between 2012 and 2020. According to figures from the Energy Saving Trust this would save up of CO2 over the period to 2020. 1 http://www.cutthevat.co.uk/cutthevat/research/

Significantly reduce the competitive advantage of the informal economy over legitimate traders. Government should cut VAT to 5% on all home repair, maintenance and improvement work Public Sector Asset Management Effective and efficient use of property will deliver savings for the taxpayer, better productivity, improved services and more energy efficient property. RICS recommends consideration of the following measures to deliver more efficient use of public sector property: Government should review the efficiency of subsidies for energy efficiency measures by location and building type will deliver more efficient use of public money and more efficient buildings. (Appendix 1) Government should consider lifting tax barriers associated with property transfer entirely within the public sector, such as the Stamp Duty Land Tax, to enable local structures to be put in place. Central and local government both have a role to play in realising the property change that will meet operational and financial objectives. By undertaking a more strategic approach to property asset management, financial gains and improvements in productivity and service delivery will be achieved. RICS welcomes the endorsement of RICS Public Sector Asset Management Guidelines (published February 2012) by Cabinet Office and DCLG as a significant step towards achieving this strategic approach in central and local government. RICS will shortly be bringing together the Government Property Unit, Defence Estates, NHS Estates, Property Services Metropolitan Police, Police Estates, local authorities and key stakeholders to set out a timetable for how the sector can work together to deliver professional property asset management by all property professionals in all public sector bodies to ultimately deliver the savings required. This will include RICS working with the Government Property Unit other stakeholders to develop training and best practice. Government must be willing to continue funding training and development for public sector property professionals to ensure the sector is equipped to meet the funding challenges set. In an RICS survey of members working in the public sector, nearly 50% suggested training was the most effective way to deal with skills shortages.

Local Government Finance RICS recognises that the current system of local government finance is in need of reform and considers that there should be a full review of business rates reliefs and exemptions as recommended by the Lyons Inquiry in 2008. RICS broadly supports encouraging local authorities to promote economic growth. However, the Government's proposals are exceptionally complex and require a series of adjustments. RICS is working with DCLG to ensure these adjustments are made and any unintended consequences of the proposals are mitigated. Furthermore, RICS recommends that: Government must consider how the retention of business rates by Local Authorities and the promotion of local growth policies interacts with Local Enterprise Partnerships and Enterprise Zones. It is vital that Government works across departments to ensure these measures are complementary and deliver the growth required. Tax Increment Financing (TIFs) RICS research Tax Increment Funding an opportunity for the UK? is due to publish in Spring 2012 and examines the practical operation and the success criteria of TIFs. The research critically examines the TIF models that are operational in the US to identify lessons that can be learned prior to possible adoption in the UK. The report considers the manner in which TIF areas are designated, the governance and legislative procedures necessary to set up a TIF, the variety of risk sharing schemes in operation, the success and weaknesses of the models and the methodology used to measure performance. RICS is already working with DCLG on TIFs and would be pleased to share the results with both Treasury and DCLG ahead of publication. RICS recommends: Government should provide clear guidance on criteria local authorities should use to judge the but for and blight test and calculation of displacement effects. Government should require that local authorities are regularly required to evaluate the success of TIFs against the business case including the contribution to the implementation and integration of local economic strategy Phased introduction of TIFs to ensure orderly and better informed adaption Government Procurement Efficient, effective and sustainable procurement throughout the whole life cycle is vital to ensuring the National Infrastructure Plan is delivered with value for money achieved for the taxpayer. Robust data and standards are essential in delivering a more efficient and sustainable construction process and RICS is already playing a lead role in delivering these as part of the Governments Construction Strategy and Low Carbon Action Plan. RICS fully supports the contractorled, integrated and collaborative a pproach to procurement in the Construction Strategy and fully endorses the Interim Report of the Procurement/Lean Client Task Group 2 RICS and Lambert Smith Hampton, Empty Property Rates Survey http://www.rics.org/site/download_feed.aspx?fileID=387&fileExtension=PDF Summary Report, published in January 2012. RICS will continue to work with Government and industry to move the reports recommendations forward and gain recognition of these standards which will help deliver the savings required. RICS is working to establish a standard method of measuring embodied carbon, through our Building Cost Information Service (BCIS). RICS has commissioned a report to be written and an exposure draft will be launched for wider member consultation on 20 March. RICS New Rules of Measurement (NRM) offer more of a consistent approach to the measurement of buildings from the beginning of a project right until the end, and beyond delivering the savings required. RICS New Rules of Measurement will be launched on 24 April. RICS Black Book provides Quantity Surveyors and Construction professionals with recommended procedures for their activities and defines good technical standards. It ensures clients and employers receive objective advice, delivered in a professional

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manner that is carried out with a consistent approach. RICS Black Book will be launched 24 April. The construction sector needs robust, centrally coordinated data to support all parties throughout the life cycle of an asset to deliver value for money. RICS has been tasked by Government with assessing the potential use of BIM in the construction and refurbishment process. Empty Property Rates Research by RICS and Lambert Smith Hampton (2009) 2 shows that this would act as an incentive for landlords to bring property back into use and developers to build new property. The reduction of the rateable value threshold from 18000 to 2600 in April 2011 is continuing to result in commercial property being demolished and lost to the market rather than being left available for future use as the economy starts to recover. Government should make Empty Property Rate Relief available for 12 or 18 months before full business rates are payable. RICS and Lambert Smith Hampton will be publishing new research on the impact of the reduction of the rateable value threshold in March 2012 and will be pleased to share findings with Government before publication. Mortgage availability RICS members are clear that a lack of mortgage availability is the fundamental issue RICS does not wish to see a return to pre2007 lending 3 RICS Research The Future of PFI and PPP (2010) http://www.rics.org/site/download_feed.aspx?fileID=9846&fileExtension=PDF levels, it must be Government priority to work with the banks to make mortgages more available to those who can afford them. The NewBuy scheme and the decision to expand it beyond first time buyers is a welcome initiative but care needs to be taken that it does not distort the market. More detail is needed on which lenders will be involved and what, if any, premium they will charge entrants to the NewBuy scheme. However, the relaxation of Governments attitude to risk is to be welcomed. RICS considers that a series of incremental measures will help improve mortgage availability: Government should work with the banks to develop a mortgage product that addresses those in negative equity for example, the ability to port the negative equity. Government should consider lending or guaranteeing first time buyers a reasonable deposit in return for an equity stake in the property. This would provide the Government with a clear return on its investment whilst stimulating the market A mortgage indemnity scheme that works for the whole market is required. Infrastructure Whilst the 5bn of extra capital spending from savings in other departments announced in the Autumn Statement was welcome, only 730m new funding for infrastructure was announced. The UK will require 500bn in new and refurbished infrastructure by 2020.3 This cannot be delivered without successfully leveraging private finance. Institutional Investment RICS supports Government moves to leverage institutional investment in infrastructure but urges a reshaping of the planning system to support this and to recognise the needs of these investors. It is the RICS view that the draft National Planning Policy Framework and the Housing Strategy did not clearly address this. RICS is bringing together investors, planners, central and local government to devise new models and delivery vehicles for financing infrastructure and to recommend improvements to planning practice which encourages greater private sector infrastructure investment. In the short term, RICS aims to help LEPs make informed choices about private investment and how to leverage this investment to deliver much needed infrastructure and unlock development, related to the

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Governments Growing Places Fund. RICS is currently in discussions with DCLG. In the longerterm, the Task Force will seek to ment products and model financial partnerships with 4 RICS Research The Future of PFI and PPP (2010) http://www.rics.org/site/download_feed.aspx?fileID=9846&fileExtension=PDF national and local government, LEPs, developers and housing providers. These will be linked to national and local regeneration and growth priorities as part of a process of developing a mature infrastructure investment market in the UK. It is the intention to ensure HM Treasury, DCLG and other Departments are represented at a senior level at this group. RICS has already shared this work with DCLG and would be pleased to discuss with HM Treasury. Government must ensure that new infrastructure projects drive a long term increase in economic activity as well as delivering immediate benefits for jobs and local economies. Government must ensure it targets investment initiatives on settlement areas which meet economic and employment rebalancing goals and achieve the best value for money. RICS is due to publish Locational investment Where to target investment for maximum economic returns in March 2012 which will examine how investment should be targeted locationally to deliver the best use of public money. RICS would be pleased to share the research with Government ahead of publication. PFI Reform RICS responded to the recent Call For Evidence on PFI Reform working with a joint team from the University of Ulster and the University of Aberdeen. The joint team will use the data collected in the development of the second phase of the RICS Research: The Future of Private Finance Initiative and Public Private Partnership (2010)4. The second phase will centre around a value for money framework based on risk transfer, whole life costs and efficiency and will seek to weight and quantify the input components of the model and assess impact in terms of reducing or narrowing the funding gap between conventional procurement costs and those attributed to PPPs. RICS and the joint team will be pleased to share emerging findings with the Treasury in due course. RICS looks forward to continued engagement with the Treasury on this issue, particularly around the benefits of RICS New Rules of Measurement in providing a consistent approach to the measurement of buildings throughout the whole life cycle and RICS work in developing the skills base to deliver a more strategic FM profession. Both are vital in delivering value for money in the provision of public services. RICS would be pleased to facilitate further discussions with member expertise as Treasury develops its thinking. RICS recommends the use of RICS New Rules of Measurement 13 in all contracts to help to standardise cost data, facilitate regular benchmarking and deliver cost savings in both the construction and operational phases. The Governments ambition to use benchmaking on all contracts will be dependent on robust data.

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RICS recommends improved training and development of public sector facilities managers to ensure they have the right skills to manage contracts and deliver value for money throughout the lifecycle of an asset. A more professionalized, strategic FM profession will deliver significant efficiencies and value for money. Chartered FM Surveyors are able to add value at all stages of the lifecycle of an asset. RICS recommends the establishment of a central agency to share and retain expertise and knowledge, generating better, more robust data and a continuous improvement loop. A centralized agency similar to the Canadian model could be considered. RICS recommends future private finance models allow for greater flexibility in the contract repayment structure to provide for greater incentivisation for innovation and value for money. RICS recommends that a multiagency use approach to risk management will help spread risk, share expertise and deliver cost savings for the public and private sector. Improving the energy efficiency of property Residential RICS welcomes the Green Deal as mechanism to fund improvements in the energy efficiency of all housing stock, particularly older properties that are more difficult to improve. This is vital in order to move towards meeting the Governments ambitious carbon reduction target of 34% by 2020 as mandated in the Climate Change Act. Whilst much of the success of the Green Deal is dependent on how successful Government and industry participants are in communicating the benefits of the scheme to consumers, the Government should consider fiscal levers as well as policy drivers to encourage take up of the scheme. Government should consider charging differential levels of Stamp Duty Land Tax (SDLT) according to EPC rating. There are already exemptions from SDLT for certain classifications of property and these could be amended and/or maintained to ensure that heritage buildings need not be penalised whilst driving improvements to the majority of properties. This incentive uses the market to change behaviours rather than legislation to ban sections of the market. RICS would welcome the opportunity to share this proposal in detail. Government should consider establishing an independent body to gather requests for Green Deal assessments and to distribute these to the market according to the suitability of assessors for each job. This would drive take up of the Green Deal and ensure the consumer receives fair and accurate advice. A small proportion of the 200m of new andadditional Government funding to encourage early take up of the Green Deal, announced in November, could be used to establish this independent body. Commercial There are a range of measures Government should consider taking to drive the take up of energy efficiency measures in commercial buildings. RICS is a member of the Green Deal Commercial Property Group and supports the recent recommendations made to the Minister of State for Energy and Climate Change by the group. Government should consider using the capital allowances regime to work alongside the Green Deal to increase the attractiveness of the Green Deal for commercial property

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Government should consider making Display Energy Certificates mandatory in commercial buildings, taking into consideration the potential cost burden to the sector. Evidence of their likely effectiveness is key. Sustainability and Valuation RICS is participating in and supporting a series of global projects that are aimed at establishing the link between sustainability and value in the built environment. First results from these projects indicate that there is emerging evidence in some submarkets that sustainable buildings both in the residential and commercial sectors achieve higher turnovers and cash flow than their nonsustainable counterparts. For more information and further briefing, please contact: Mary Thorogood RICS Parliamentary Affairs Manager T: 0207 334 3831/E: mthorogood@rics.org

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