The cost of building green residential developments could be up to 12.5% higher than conventional homes according to a research carried out by property advisors CBRE Hamptons International.

The report compared the standard costs of construction for a 12-storey, 50 unit development totaling around 8000 m2 with a theoretical zero-carbon development of the same size which included features such as combined heat and power, a sky garden, natural ventilation and lighting and energy efficient appliances.

Using standard build costs it was found that a zero carbon flat of around 60 m2 would cost over 拢13 000 more than a more conventional unit.

The report concluded that while the stamp duty exemption for zero-carbon homes could help offset this extra cost, it was insufficient and does nothing to address green developments that fall short of the zero carbon standard.

鈥淭he buyer of a green 60 m2 flat in London will see an increased cost of 拢13,400. If this flat were to be valued at 拢200,000, the tax duty exemption would only total 拢2,000, and the buyer will have to absorb approximately 85% of the premium,鈥 the report said. However, the same flat in a more affluent area of London, costing 拢400,000, would see a stamp duty exemption of 拢12,000, leaving the buyer to pay only 10% of the green premium.