LEGISLATION on sustainable development is a timebomb which could hurt business badly when it explodes.

That's the gloomy forecast from the property consultant King Sturge, which has an office in Swindon.

The firm has said an avalanche of new legislation will affect the balance sheet of every company in the UK and will completely change the face of the property market.

King Sturge has warned the Government that developers and landowners are waking up to the threat, but has also requested more help from Whitehall to assist firms to meet new legislation.

King Sturge's report, called Property Sustainability Matters says that owners and occupiers will increasingly be under pressure to address the sustainable agenda.

King Sturge's head of research Dr Angus McIntosh said: "The main issue facing the property market is the growing and changing number of regulations, ranging from United Nations initiatives to European and UK enactments."

There will also be pressure to improve competitiveness and lower risk management and mitigate the cost of insurance premiums.

This means the property market will find that access to investment finance is influenced by sustainability risk assessments.

David Spencer, partner in charge of King Sturge's Swindon office, said: "The outcome of these new regulations will undermine land values and make development less profitable."

He has warned that the number of sustainability-related rules and regulations will affect property investment funds.

Among recent regulations have been requirements to carry out strategic environment assessments on all significant developments, EU directives on landfill and the Disability Discrimination Act.

Also, there will soon be new regulations governing recycling and there is likely to be an increase in the climate change levy to help the UK meet its targets on renewal energy.