Sustainability Flashcards
Sustainability
meeting the needs of the present without compromising the ability of future generations to meet their own needs
How can people/businesses be more sustainable?
- reduce, reuse recycle
- travel smarter - avoid planes
- limit plastic consumption
What does Global Professional GN Sustainability and Commercial Property Valuation state?
- valuer must be aware of ways sustainability can impact levels of value
- impacts all bases of value
EG climate change on location, physical characteristics of building and increasingly sustainable attitudes of investors and occupiers
Building Regulations
- set of regulations and standards new buildings must be built to in terms of structure, fire safety, electrical safety, ventilation, conservation of fuel and power etc
Energy Act
- Energy Efficiency Regulations 2015 make it unlawful to let properties with EPC F or G from April 2018
- unlawful to continue to let properties with EPC F or G from April 2023
Why does Energy Act impact PMs?
Our job is to maintain or increase asset value, so PM should advise LL to upgrade property to good EPC rating so it is lettable and sellable
Where do MEES apply?
England and Wales
What does EPC show?
- current efficiency rating (A-G)
- guidance on how to improve
- what works could be completed
- what EPC rating could be
Note: valid for 10 years from date of issue
Where does MEES not apply?
- leases of 6 months or less
- leases of 99 years or more
What buildings do not require an EPC?
- listed buildings
- religious buildings
- temporary buildings
- buildings due to be demolished
If there should be EPC, but building does not have one, what is the fine?
12.5% of RV (up to cap of £5,000)
When are Landlords exempt from complying with MEES?
- all improvements already carried out
- consent to do works is refused by T
- expert advice is that works would devalue property by 5% or more
- cheapest improvement is £3,500
- golden rule: independent assessor determines that improvements would not pay for themselves via savings within 7 years
Note: exemptions must be logged on PRS Exemptions Register that Government created
Penalty for not complying with MEES?
- £5,000 - £50,000 (10% RV) for properties with less than 3 month rental
- £10,000 - £150,000 (20% RV) for properties with more than 3 month rental
Also reputation as breaches get published on a public register!
Note: issued by Local Weights and Measures Authorities
Implications of MEES for Landlords?
- properties will be illegal to let unless upgraded
- valuations will be affected and marketability will be diminished
- rent reviews could be impacted
Climate Change Act 2008
Government commitment to cut U.K. CO2 emissions by 80% on 1990 levels by 2050
What is the latest amendment to the Climate Change Act 2008?
- 2019
- amended to achieve Net Zero by 2050
Who do Heat Network Regulations apply to?
- any heat supplier, which could be LL
- communal heating or energy used to provide hot water, heating or cooling, where building is occupied by multiple occupiers and LL apportions bills
If Landlord is heat supplier, what must they do?
- notify Office for Product Safety and Standards (OPSS)
- provide information required every 4 years on the template
EG location of communal heating, estimated capacity, how many dwellings are being supplied etc
Sustainability Checklist
- used to encourage new developments that support community sustainability objectives
- provides local governments with process to meet sustainability and climate change objectives
BREEAM
Building Research Establishment Environmental Assessment Method
- longest established method of assessing, rating and certifying buildings
- used in over 50 countries