BPF commissions new research on heat network regulation

The British Property Federation (BPF) today announced it has commissioned new research to examine the impact of heat network regulation on the property sector.

Heat networks are expected to play a central role in the UK’s transition to low carbon heating, with regulation set to expand significantly. In England, the Government is introducing new consumer protection measures, new minimum technical standards for heat networks and a new zoning framework where certain buildings within zones will be required to connect to a heat network.

The BPF have commissioned JLL to examine the impact of these new regulations on property investors, developers and owners. The research will:

• explore the sector’s current experience of heat networks, including why heat networks matter to the property sector;
• examine potential opportunities and challenges for the sector, including awareness of the new regulations; 
• collect industry insights and provide practical advice for investors and developers; and
• set out the implications for policy and investment.

The research is being supported by BCLP LLP and Vattenfall Heat UK.

The results of the research will be published in the late spring.

Rob Wall, Assistant Director at the BPF said: “Heat networks are essential to achieving the UK’s net zero ambitions, but the regulatory landscape must work for all stakeholders, including the real estate sector, and deliver a fair outcome for consumers. Our research will help ensure that policymakers and the wider property sector have the insight needed to get this right.”

Stuart Allison, Strategy Director at Vattenfall Heat UK said: "We're delighted to co-sponsor this research, alongside BCLP. Heating is responsible for more than one third of the UK's carbon emissions; working with the property industry to upgrade our heating is one of the most urgent tasks on the path to a modern and sustainable energy system. Collaborating on forward thinking initiatives like this, supporting the industry to maximise the potential of regulation and navigate its new guidance, is crucial to large scale heat decarbonisation in urban areas across the UK."

Mark Richards, Regional Practice Group Leader of BCLP’s Energy, Environment and Infrastructure team commented: “The new regulatory environment for UK heat and cooling projects creates significant challenges and opportunities for the real estate sector. This BPF initiative will provide a valuable forum for the real estate industry to continue to make its voice heard to heat sector policymakers, developers, operators and suppliers. In our role as a leading legal adviser to real estate and infrastructure clients we are pleased to contribute to this valuable BPF work in collaboration with Vattenfall and JLL.” 

Kenneth Addly, a heat/cooling regulatory specialist in BCLP’s Energy, Environment and Infrastructure team added: “This valuable BPF initiative will help gauge the real estate sector’s readiness to engage with the requirements of the new consumer protection, zoning and technical assurance regimes. The more we understand the sector’s views the better placed we will be to service our clients and help steer them through this transition.” 

Mike Dagnall, Director, Sustainable Asset Services at JLL said: “JLL's research will provide insight into how expanding heat network regulation affects property investment decisions and development viability. We will be examining current industry experience, regulatory awareness, and practical implementation challenges. This will help the sector understand both the opportunities and obstacles in delivering heat networks that support the UK's net-zero transition while maintaining commercial feasibility.”