There is now a trend towards stricter environmental legislation in Europe and North America. In the UK, the Town and Country (Assessment of Environmental Effects) Regulations 1988 and the Environmental Protection Act 1990 reflect broader European Union trends and concerns. A survey of major players in the UK commercial property market found that:

 almost all respondents were aware of the growing impact of environmental legislation and built in potential environmental costs and risk into assessments of new developments or acquisitions, but over one third of firms did not routinely assess all new projects

 only half of the firms sampled had completed an environmental assessment of their existing portfolios

 most firms used desktop environmental surveys to provide initial warning of potential problems, though there was little evidence of the use of formal quantitative valuation models to handle environmental hazard

 most firms applied estimated directly assessed value or subjectively adjusted yields, while few firms used probabilistic scenario models or formalised risk premia adjustments most respondents had investment strategies that were highly risk averse in relation to environmental problems

 almost all firms considered risk on a single asset rather than on a portfolio basis

There are major impacts on the property market in terms of the relative valuation and performance of different sectors and sub-markets, the supply of space and for the attractiveness of real estate as an asset class. There are wider implications, including constraints on borrowing for capital investment, on space usage, on mergers and acquisitions and on profitability. Property-led urban regeneration strategies may also be adversely affected.