Our new research report reveals how housebuilders and developers can use SuDS in their marketing to support premium house prices.
Sustainable drainage systems (SuDS) are an important tool in helping developers to offer the environmentally friendly, future-ready new build housing that people want to buy.
However, in 2022, new research commissioned by Wavin reveals that public awareness of SuDS remains low. This is despite the fact SuDS are a key part of tackling the impacts of climate change and intensifying urbanisation, both of which increase the likelihood of flooding. This lack of understanding about SuDS is surprising, particularly given the strong and growing public awareness of the climate emergency and desire for increased sustainability in the built environment. However, it highlights a knowledge gap that, if bridged, could significantly benefit developers. SuDS could be a point of differentiation, becoming a major proof point for sustainability credentials that provide strong reassurances about flood defences. What’s more, the research shows that developers can present SuDS as a multi-faceted benefit that buyers are willing to pay a premium for.Sustainable drainage systems (SuDS) are an important tool in helping developers to offer the environmentally friendly, future-ready new build housing that people want to buy.
“When SuDS are done well and designed at the beginning of the development process, they give a development blue green infrastructure, outdoor spaces, trees, water courses and ponds. SuDS create an appealing surrounding area that will ultimately bring the price of housing up.” Vicki Westall, Flood and Water Management Co-ordinator – Strategy, Hampshire County Council
Research methodology
We conducted an online survey of 500 adult respondents with an even distribution of ages. All respondents were in current living situations that could make them the target market for purchasing new build houses, including currently renting, living with parents, or already owning a property. The research was conducted in October 2022. All percentages in this document have been rounded up to one decimal place.
Flood risk is a real and motivating fear
As flooding caused by overwhelmed drainage systems or burst riverbanks hits the headlines, public fears grow that flooding could affect their home. The Met Office reports clear evidence that climate breakdown is impacting rainfall. It’s forecasting warmer and wetter winters, and more short, intense rain events that lead to more frequent flooding. This is an issue that is only going to grow in severity and importance.
The fact that one in six properties in England is at risk of flooding from rivers, sea and surface water is sinking into the public consciousness, turning flood risk and resilience into buying factors for new houses. Against this background, 99.4% of our sample stated that flood resilience is an important consideration when buying a new home, with 71% rating it as quite or very important.
“There’s a general awareness of SuDS but a lack of understanding about how these systems work. Where there’s a known risk of flooding, developers are much more proactive but it’s not on most people’s radar unless the developer makes a point of it.”Sarah Reghif, Flood and Water Management Co-ordinator – Technical, Hampshire County Council
Buyers want a green environment for their new build house
Established research from the ONS confirms that home buyers will pay more for houses and flats near green spaces. It found that houses and flats within 100 meters of green space cost 1.1% more than similar properties further away, and that being within 100 metres of a public green space attracted the highest premium for detached homes, adding 1.9% to the price.
Buyers valuing green spaces was given a boost by the pandemic, when a walk outside was the only escape from life indoors. People continue to value the opportunity to enjoy green spaces today, with nearly half of adults in England reporting that they end more time outdoors now than before the pandemic.
These perceptions of value translate into the desirability of green spaces in high density housing developments. Every single one of our research respondents believed green spaces are important when buying a home in a new housing development, with 81% rating green spaces as quite or very important.
“It’s not just about buyer-preference. Developers are also obliged by law to provide green space and nature recovery obligations will also be introduced soon. If developers implement SuDS properly, they’re meeting a range of obligations all at once.” Vicki Westall, Flood and Water Management Co-ordinator – Strategy, Hampshire County Council
Cost conscious buyers want low insurance premiums
Given the amounts of money involved in buying and moving into a new build home, particularly in today’s difficult financial landscape, potential buyers are extremely cost aware. It’s highly likely that buyers will carefully budget for every expense, including insurance premiums. This will become even more important given that a 2022 Bank of England report has revealed that insurance premiums covering the cost of flood risks could rise indefinitely over the next 30 years, if climate action is not undertaken.
In response, Flood Re, a joint initiative between the Government and insurers is working to make the flood cover aspect of household insurance policies more affordable. With hundreds of thousands of homes across the UK potentially becoming harder to insure because they’re at high risk of flooding, Flood Re will provide much needed support by lowering premiums for at-risk households.Our sample of potential new build buyers showed that potential insurance premiums were important to 99% of respondents, with almost three quarters (73%) rating them as quite or very important.
“Historically, developers haven’t promoted the flood risk measures they’ve put in place. It was thought that talking about these schemes would mean buyers would associate the development with flooding. The messaging needs to change so people understand these measures are sensible, sustainable and mean the price of houses should go up and insurance premiums should go down.”
Vicki Westall, Flood and Water Management Co-ordinator – Strategy, Hampshire County Council
Buyers are unaware of the existence of SuDS
They can deliver effective systems for coping with surface water drainage in ways that can also ‘double up’ as green amenities, such as rain gardens, tree pits, swales, wetlands, ponds and soakaways – even attenuation tanks under a children’s playground.
However, potential buyers are unaware of the existence of SuDS, with 72% of respondents saying they had never heard of SuDS/sustainable drainage systems. Even when prompted to think about developers using green spaces, playgrounds and ponds to increase the flood resilience of new housing developments, only 40% of potential buyers are aware that this happens.
This highlights an important contrast – buyers don’t realise that new housing developments often include SuDS alongside all the other sustainability, amenity and aesthetic benefits provided, and yet developers are legally obliged to invest in SuDS as part of their remit. SuDS are a significant marketing tool that many developers aren’t exploiting.
Developers should pitch SuDS as multi-beneficial. Green roofs, for example, have the potential to decrease energy bills as well as increasing the price of the house. There are many incentives that will get house buyers on board, but SuDS are currently not sold in the right way.” Amrie SinghWater Consultant, Create Consulting.
The SuDS operating environment for developers
SuDS regulations updating the developer’s legal obligations followed changes introduced by Schedule 3 of the 2010 Flood and Water Management Act.
In brief, Schedule 3 proposed that SuDS became a legal requirement for any development over 100sq/m and would have to be implemented at the design stage of development. It gave local authorities greater powers to deny developers the automatic right to connect drainage systems to public sewers. Plus, it designated the local authority as the SuDS Approving Body (SAB), required to adopt and maintain approved drainage systems that served more than one property and were not part of the public highway. Flooding is a very real fear for buyers, and they’re eager to find out what developers are doing to protect their new homes. An overwhelming 98% of our sample agreed that they would like to know the detail of any flood prevention measures in place. The point to note here is the request for detail. Buyers aren’t looking for vague statements about flood resilience. They’ve seen on the news how devastating flooding can be, and they want reassurance that their new build home will be protected. There’s a great deal of scope for forward-thinking developers to build on this interest, to provide clear explanations around SuDS and their benefits.
Implementation of Schedule 3 varied across England and the devolved governments of Scotland and Wales:
• Wales adopted Schedule 3Developers must demonstrate their compliance during their planning application and the SuDS scheme is adopted by the local authority upon completion.• Scotland didn’t adopt Schedule 3, instead implementing SuDS into planning legislationScotland has built a SuDS policy into local planning laws, stipulating SuDS as part of new developments and compelling Scottish Water to adopt compliant schemes.• England hasn’t adopted Schedule 3It has amended the National Planning Policy Framework as an alternative, stipulating that SuDS should be incorporated into developments of 10 dwellings or larger unless demonstrated to be inappropriate by the developer, with the developer taking responsibility for determining adoption of the SuDS scheme.
SuDS are a significant part of planning and constructing new housing developments – so why are some developers not making the most of their benefits to support sales?
Buyers want to know more about flood prevention measures
Flooding is a very real fear for buyers, and they’re eager to find out what developers are doing to protect their new homes. An overwhelming 98% of our sample agreed that they would like to know the detail of any flood prevention measures in place. The point to note here is the request for detail. Buyers aren’t looking for vague statements about flood resilience. They’ve seen on the news how devastating flooding can be, and they want reassurance that their new build home will be protected. There’s a great deal of scope for forward-thinking developers to build on this interest, to provide clear explanations around SuDS and their benefits.
Buyers are open-minded about what type of SuDs are used
Our research delivers guidance on what buyers are looking for from a SuDS solution. When given the choice of a pond or underground attenuation tanks to store water and prevent flooding during high rainfall, opinions were split relatively equally between a pond (59%) and underground attenuation tanks (41%). This is good news for developers, reassuring them that both solutions are acceptable to buyers and giving them the freedom to choose the approach that best suits their site. All buyers are cost conscious over what is probably the largest purchase of their life, but they are willing to pay more for factors they consider important. Three of the key benefits of SuDS are so desirable to buyers that they would be willing to pay a premium to achieve them. Local contributions to flood resilience (72%), water quality (55%) and biodiversity (42%) are sufficiently valuable to buyers that they will pay more for a home that goes beyond regulatory requirements. We also uncovered useful insight into the factors affecting opinions on SuDS solutions. The spread of factors reveals a mix of practical, environmental and aesthetic considerations, reflecting the holistic nature of SuDS. Interestingly, appearances lead the pack with aesthetics influencing 54% of opinions. This was closely followed by health and safety (44%) and biodiversity (44%). Maintenance considerations (38%) and space considerations (33%) were both chosen by a third of our sample.
Buyers will pay a premium for the benefits of SuDS
All buyers are cost conscious over what is probably the largest purchase of their life, but they are willing to pay more for factors they consider important. Three of the key benefits of SuDS are so desirable to buyers that they would be willing to pay a premium to achieve them. Local contributions to flood resilience (72%), water quality (55%) and biodiversity (42%) are sufficiently valuable to buyers that they will pay more for a home that goes beyond regulatory requirements. We also uncovered useful insight into the factors affecting opinions on SuDS solutions. The spread of factors reveals a mix of practical, environmental and aesthetic considerations, reflecting the holistic nature of SuDS. Interestingly, appearances lead the pack with aesthetics influencing 54% of opinions. This was closely followed by health and safety (44%) and biodiversity (44%). Maintenance considerations (38%) and space considerations (33%) were both chosen by a third of our sample. Again, this is good news for developers because it underlines the returns that can be made on investments into high-quality SuDS – if buyers clearly understand the benefits of SuDS.
“Developers are bypassing an opportunity in terms of the multiple benefits. We’re not just talking about flood risk. We’re talking about drought control, environmental protection, encouraging biodiversity, safeguarding mental health, promoting physical health, reduction of accidents because you’re incorporating blue green corridors for transport. There’s a huge area here that needs to be better understood.” Sarah Reghif, Flood and Water Management Co-ordinator – Technical, Hampshire County Council
SuDs are a golden marketing opportunity for developers
Our research shows that regulatory investment in SuDS can be turned into a marketing advantage and a point of competitive differentiation by developers. Although many buyers are largely unaware of SuDS, they are eager to realise the benefits these bring and will be receptive to more information as part of the buying process.
• SuDS are an effective and aesthetically pleasing way to build flood resilience and provide green spaces.• SuDS are often ‘disguised’ as green amenities such as playgrounds and ponds.• SuDS are an established, proven method of addressing water quality issues. They have the power to protect existing infrastructure from being overwhelmed and they limit water pollution in the process. By harnessing natural ecological processes, they’re also ready to improve water quality close to where the water originates. • SuDS can create a habitat for biodiversity, replicating what would have existed in a greenfield site, benefiting water quality and urban wildlife.
There’s a clear opportunity for developers to position themselves as reliable suppliers with a green conscience, who have the buyer’s wants and needs at the heart of their operation.
“SuDS are about more than just drainage and can be incorporated to provide a wide package of benefits. Developers are missing a trick with the promotion of SuDS in new housing developments. When they build these developments, if they invested in glossy marketing about the benefits sustainable drainage systems bring it would raise awareness. We need more promotion of the success stories.” Sarah Reghif, Flood and Water Management Co-ordinator – Technical, Hampshire County Council
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