Sustainability

Question 1

What does the RICS do to improve sustainability within the industry?

Answer 1

Research, best practice guidance, training and certification.

Question 2

What are some things on the current sustainability action agenda?

Answer 2

Potential building passports
Guidance on whole life carbon assessments
Valuation training
Building carbon database

Question 3

What does it mean to achieve Net Zero? What is the UKs target date to achieve this?

Answer 3

Net zero means all carbon production is offset but other factors, like the planting of trees.

The UKs goal to achieve this is 2050.

Question 4

Why is property a critical factor in achieving the UKs Net Zero target?

Answer 4

Property is the second highest producer of carbon emissions across their lifecycle, from construction to redevelopment.

Question 5

How does the government plan to address the carbon emissions of property in the UK?

Answer 5

The “Green industrial revolution” was launched in 2020. This looks to change power generation, energy usage and building efficiency in the UK.

Question 6

What is the UK green building council?

Answer 6

A council which aims to improve building efficiency within the UK by transforming design, construction and usage of buildings

Question 7

What has the UK green building council recently implemented?

Answer 7

They have implemented a framework for the UK property industry to help reach the UKs 2050 net zero target.

Question 8

What impact does sustainability have on demand and value?

Answer 8

Positive impact on value and demand. Occupiers are becoming more conscious of their environmental impacts and therefore this impacts values. Investors now look to future proof assets in terms of sustainability.

Question 9

What basic works can be undertaken to improve the sustainability of a property?

Answer 9

Lighting, air conditioning, double glazing, workplace practice, sensors, natural light, green leases etc.

Question 10

What are some key forms of sustainability accreditation in property?

Answer 10

BREEAM ratings
WELL Buildings
LEED Building
SKA Fitout Rating

Question 11

When is an EPC required?

Answer 11

Sale, lease, development or refurbishment

Question 12

What properties are exempt from EPCs?

Answer 12

Places of worship, listed buildings, standalone buildings under 50 sq. m., buildings without heating, temporary structures

Question 13

When is an EPC required in marketing a property?

Answer 13

You should include an EPC in the brochure of the property. If you don’t, a new EPC must be commissioned within 7 days.

Question 14

What are the current requirements with EPCs under MEES?

Answer 14

Cannot let a property with an EPC under ‘E’ rating

Question 15

What are the changes coming to MEES regulations?

Answer 15

From 1 April 2023, any existing letting with an EPC below an ‘E’ rating will be void. This is also likely to increase further in the future with a target of ‘C’ rating as a minimum by 2030.

Question 16

What must an EPC contain?

Answer 16

Address, rating (both letter and number), area, estimated running costs and information on the current energy provisions.

Question 17

What are the penalties for breaching EPC regulations?

Answer 17

10% RV up to £50k for sub three months breach

20% RV up to £150k for over three month breach

Question 18

What are the exemptions to MEES?

Answer 18

Place of worship, listed building, not cost effective, sub 6 months or over 99 year lease, devaluation

Question 19

What are the penalties for breaching MEES?

Answer 19

Sub 3 months = 10% RV up to £50,000

Over 3 months = 20% RV up to £150,000

Question 20

What is a BREEAM Rating?

Answer 20

Building research establishment environmental assessment method.

Voluntary rating assessment that can no be required under planning permission.

Considers sustainability of building environmentally and socially.

Question 21

What are the ratings within BREEAM?

Answer 21

Outstanding, Excellent, Very good, Good, Pass

Question 22

What guidance is there for occupiers on how to reduce their energy consumption?

Answer 22

Publication by the Better Building Partnership (BBP)

Gives guidance on works and green leases etc.

Question 23

How does the build environment have an impact on economic, social and environmental sustainability?

Answer 23

Economically creating investment, jobs, placemaking

Socially in providing employment, creating a culture and through planning

Environmentally with increasing regulation, a focus on good design and whole-lifecycle energy saving

Question 24

Why are occupiers increasingly focused on sustainability credentials?

Answer 24

Many benefits to their business. Benefits image, benefits talent attraction and retention, benefits energy usage and costs, futureproofs freehold assets

Question 25

What are the implications of EPCs on Landlords?

Answer 25

Impacting property values the closer they are to the E rating cut off. Therefore, investing in assets to futureproof them.

Question 26

How are MEES becoming more stringent?

Answer 26

1st April 2023 increasing to make any letting below E illegal, even if started. Likely to increase to C by 2030.

Question 27

What are MEES exemptions?

Answer 27

Cost effective improvements (7 years)

Devaluation (+5%)

Listed building

Consent not available from tenant