Developers’ costs rise by £213,000 over scorching summer months
Property developers’ costs rose by more than £213,000 on average this summer due to a succession of heatwaves felt across the country, according to research.
Some 52% of developers said their expenses had risen due to temporary cooling measures, including heating, ventilation and air conditioning (HVAC) systems, while 51% reported lower productivity.
Half of developers reported technical delays involving building materials, while 49% had to temporarily stop work on one or more projects. Only 2% said this summer’s weather had no negative impact on their projects.
The findings came from a survey carried out by Shawbrook, which asked 500 developers how their sites were impacted by this year’s scorching summer.
On average, developers said the cost or soaring temperatures added £213,617 to their costs across their development projects and, as a result, are prepared to adapt their plans.
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Future-proofing
Some 43% said they will allow more time for projects to be completed, while the same proportion plan to introduce additional health and safety protocols to protect workers during heatwaves.
More than a third will modify site designs to improve natural ventilation and shading, while 38% plan to avoid certain building phases during peak summer months.
Developers are also considering longer-term climate resilience. Two in five plan to invest in climate-resilient building materials or technologies, while 36% expect to increase the amount of budget allocated to climate-proofing measures.
When asked which measures they will prioritise over the next 12 months, 52% said they plan to install air conditioning or cooling systems in their developments. Other priorities include sustainable drainage systems (47%), water management policies (46%), measures to make developments compatible with electric vehicles (EVs) (41%), and solar power (36%).
Terry Woodley, managing director of development finance at Shawbrook, said: “The bigger picture is housing supply. When projects pause and completion dates slip, that’s homes arriving later in a country that needs more of them. The developers adapting fastest are treating heat like any other project risk – pricing it into contingencies, phasing the heaviest work away from peak summer and building resilience in from the design stage. And where costs or timelines do move, the earlier that conversation happens with a lender, the more options stay on the table.”
