The research, carried out with The UCL Centre for Sustainable Governance and Law in the Build Environment, reviewed 85 lending companies.

For under half (54%) of lenders surveyed it was unclear whether they offered sustainable finance.

Of the 29% who did, there was often limited information on their websites about lending conditions or detailed product information.

The research also gained insights from the wider developer community, with developers consistently reporting a belief that creating sustainable buildings and being able to access sustainable finance is significantly more expensive.

In answering questions around why sustainable elements are not being more widely adopted by developers, 100% of respondents cited costs as a major barrier, with 52% highlighting a lack of recognition for sustainable credentials within valuations and 47% pointing to a lack of market demand.

However, 88% of respondents felt that sustainable finance should be cheaper than regular finance.

The research also found poor levels of sustainability knowledge among developers.

Over a third (38%) said they needed a better understanding of sustainable finance before they could consider it, while 43% reported being unaware even of the opportunity to use such finance solutions.

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Sarah Milne, head of impact at Puma Property Finance (pictured above), said the findings revealed a “significant” lack of transparency around sustainable finance options.

“The belief that sustainability is philanthropy needs to be challenged — sustainable properties are not only more resilient, they perform better financially, command premium rents, have higher tenant demand, suffer from lower void periods and enjoy reduced operational costs,” said Sarah.

“There is a significant opportunity for lenders to lead the built environment towards improved environmental performance by sharing knowledge and promoting sustainability.

“At Puma we seek to place an active role in being part of that solution with our market leading Impact Lending Framework offering.”

Kell Jones, lecturer in construction procurement and supply chain management at The Bartlett School of Sustainable Construction at UCL, added: “There’s a need to demystify sustainable finance.

“Developers are time poor, with little time to hunt for specifics around a finance offer and how to access it.

“We should also acknowledge that in a tight-margin business, adoption of sustainable measures boils down to the bottom line.

“The market needs convincing that taking a more sustainable approach doesn’t have to hit margins but can create value.”