New study challenges ‘red tape’ narrative: UK property developers embrace environmental regulation as catalyst for innovation

A new report published by the Property Research Trust reveals that UK property developers are not only adapting to environmental regulation but are actively using it to drive innovation, investment and long-term value.

Authored by Dr Emma Street and Victor Nicholls at Henley Business School (Henley), Environmental regulation and UK property development offers comprehensive analysis of how environmental standards are shaping development practices across the UK.

Drawing on regulatory mapping, a review of over 100 corporate environmental strategies, and in-depth interviews with senior industry professionals, the report provides a nuanced, evidence-based counterpoint to claims that environmental regulation is a barrier to development.

Dr Emma Street, Associate Professor of Urban Policy and Governance at Henley, said: “Environmental regulation is often at the top of the agenda when it comes to barriers to property development. Current government ambitions to deliver housing and economic growth are focused on “cutting red tape”. Thanks to the support of the Property Research Trust, we have been able to look into the views of those working at the coalface in planning, delivering and managing development projects, and have tested whether environmental regulation is really the hurdle implied by the Government’s approach.

“We learned that developers don’t seem to buy into narratives that regulation is bad for business. Instead, we found strong awareness of environmental impacts and clear corporate (and professional) commitment to managing these impacts.”

Key findings:

• Strong sector-wide commitment to environmental performance, with developers of all sizes recognising the commercial and ethical imperative to act.
• Widespread use of voluntary standards such as BREEAM, NABERS and ISO 14001, particularly among large and mixed-use developers.
• Short-term climate targets are in place at 88% of large developers, compared to just 14% of smaller firms.
• Whole-life carbon and ecological impact identified as the “next frontiers” in sustainable development.
• Developers call for clarity and consistency in regulation, not deregulation—highlighting the need for joined-up policymaking and better communication from government.

Victor Nicholls, Lecturer in Development and Planning at Henley, said. “Our research shows that developers are not only complying with environmental standards - they’re often going beyond them, driven by investor expectations, corporate values and a clear-eyed view of climate risk. We heard industry arguments for consistent (sometimes more stringent) government standards as a way of levelling the playing field and providing clarity for business.”

The report also includes a first-of-its-kind visual map of the UK’s environmental regulatory landscape as it applies to property development, offering a practical tool for policymakers and practitioners alike.

Report recommendations include:

• Improved dialogue between regulators and industry.
• Greater consistency across regulatory frameworks.
• Embedding sustainability into corporate governance and performance metrics.
• Sharing best practice across the sector, particularly with smaller developers.

Alan Dalgleish, Executive Director at the Property Research Trust, said: "We are proud to launch this timely and thought-provoking research, which offers a much-needed, evidence-based perspective on the role of environmental regulation in UK property development. At the Property Research Trust, we are committed to supporting rigorous, independent research that informs policy, challenges assumptions, and advances understanding across land, real estate, and construction.

This research exemplifies that mission - highlighting the nuanced, values-driven ways in which developers are engaging with sustainability. It is a vital contribution to the national conversation on how we shape a more resilient and responsible built environment."

Titled ‘Environmental regulation and UK property development’, the full report is available to download here.