The Viability of Product-Service Systems in the UK Built Environment: an Exploratory Appraisal

There is growing industrial consensus that the built environment must rapidly transition to a more circular economy to maximises resource lifespan, minimises waste, and reduce greenhouse gas emissions. While circularity often focuses on design and waste reduction, new business models are essential for enabling this transition. Product-service systems (PSSs), a circular business proposition centred on product or service usage rather than ownership, has been the subject of growing research. Comprehensive feasibility appraisals on PSSs in this sector, however, are lacking. As such, this study employs Stewart Brand's 'shearing layers' concept to analyse the viability of PSSs in the built environment and highlight areas of further research. By examining environmental, economic, and legal factors, the paper uses case study analysis cross-referenced with literature to establish potential opportunities and limitations for PSS implementation. Overall, the results suggest that product service models are compatible with several building layers in the built environment. The current fiscal and legal climate poses challenges to the viability of PSSs, but targeted reforms and further trials could facilitate their widespread implementation. Specifically, PSSs focused on achieving specific building performance targets, offer significant environmental benefits. This could most effectively be achieved through the assimilation of multiple building layers into an integrated product-service proposition, which should be the subject of continued testing. Overall, PSSs are not a silver bullet to decarbonisation but if inherent risks are mitigated and confidence is developed by clients, financial institutions and legal stakeholders, it could play a vital role in the transition towards a more circular built environment.