Green premiums in the UK’s commercial real estate market: A Santander x Build Ahead UK developer interview series

The UK real estate transition is no longer constrained by ambition. Developers, lenders, owners, and advisors increasingly recognise that sustainability is fundamental to asset quality, resilience, and long‑term value. Yet, outdated signals in valuation, insurance, and finance are still slowing the flow of capital to sustainable buildings—particularly in complex retrofit and residential contexts.

This report distils learnings from a cross‑sector roundtable and deep‑dive interviews with senior leaders across London’s development ecosystem. It explores how sustainability is currently understood and valued in commercial and residential markets, where green premiums are emerging, and why misaligned definitions, data gaps, and traditional financing structures can limit adoption. The report examines the roles of developers, landlords, valuers, insurers, leasing agents, and financiers—and how their interactions shape both sustainability ambition and delivery on the ground.

This report equips stakeholders across the UK built environment to better align sustainability with commercial logic. It presents concrete opportunities for the finance ecosystem to support adoption—from thematic, outcome‑based decarbonisation products and performance‑linked financing models, to stronger valuation capability, more confident insurance underwriting, and activating leasing agents as conduits for green finance. 

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    By translating sustainability into clearer signals, shared evidence, and scalable pathways, the report charts how the market can more consistently recognise and reward sustainable value.

    Charles Cooper

    Manager

    Shaiyra Devi

    Principal

    Abhishek Ramnath

    Consultant

    Contact the team ↗

    About the Author
    Zara Khan

    Zara Khan

    Marketing Business Partner, Xynteo