Hot on the heels of news that various conventional markets have seen the price of ecologically friendly homes skyrocket to a point where most people have lost interest, two more pieces of information have surfaced that do not make the eco effect in conventional markets look particularly good.
The first of those pieces of information is something that states that property developers interested in creating eco homes might actually have a harder time doing so than their counterparts involved in conventional property construction. This has nothing to do with the fact that eco homes are more expensive than conventional homes (which they are), but it has more to do with the idea that financing for eco homes is much harder to get than financing for conventional ones.
According to Simon Harris, a spokesperson for Lansdown Place (a financial advice company), said that the main reason for the difficulty in obtaining financing had to do with the uncertainty in building materials attributed to the projects. Combine this with the fact that credit is already tight from the credit squeeze that property investors have been feeling and it is easy to see that the eco markets might be suffering more than most.
Apparently, the combination of higher expense, harder financing and harder construction has been a deadly one for eco property within the UK market. According to a recent survey that was done within some of the hotspot eco markets in the country, residential landlords were more confused than ever as to how to implement ecologically friendly improvements into the properties they owned.
This has resulted in a general downswing in interest towards eco friendly property in the United Kingdom and similar results have also been seen within the United States. While it is difficult to gauge long term effects, it appears as if the lack of information available about eco property in many developed countries could lead to the downfall of the industry as a whole.
