Sustainability Flashcards
- What are details of the RICS Guidance Note on Sustainability and Commercial Property Valuation?
- Guidance Note
- Outlines the role of the valuer:
o Have a knowledge of policy e.g. EPCs and MEES
o Provide advice on risk of obsolescence (economic life)
o Regard to impact of sustainability features on value
- What is your firms ESG policy?
- Committed to becoming Net Zero (counteracted) by 2035 and Zero Carbon (none produced) by 2045
- Based within a BREEAM Excellent property with EPC – A
- Flotilla have investigated the carbon emission production
- Emissions reduced by 20% since 2020
- What CPD have you undertaken on ESG and sustainability?
Company policy and Net Zero:
- UK to achieve Net Zero by 2050
- Interim target of 78% reduction of emissions by 2030
- Government has 10-point plan for a Green Industrial Revolution, provide green jobs and buildings energy efficiency
- What is BREEAM?
- Assessment with reference to nine factors: energy consumption, water use, transport links, waste management
- Pass to Outstanding in Ratings
- Central Square Outstanding
- How does an EPC relate to sustainability?
Reflects the quality of the property and the subsequent level of energy use based on the efficiency of the property.
- When are EPCs required?
o Required when built, sold or let for more than 6 months
o When newly refurbished (heating/air-con changed)
- What are the current MEES requirements? And forecasted changes?
MEES Regulations Require:
o Letting a building requires a minimum of E (2018)
o New leases from 2018
o All existing leases from 2023
Potential Changes to MEES (Lettings):
- Government indicated that minimum will raise to:
o C by 2027
o B by 2030
o Must register EPC online by 2025
- How does EPCs and MEES relate to property sales and lettings?
o Must be requested before property is marketed
o Need EPC within 28 days of it being on market
o Must show front cover within particulars
o Can’t accept instruction of property lower than MEES
- What is the difference between MEES and EPCs?
MEES are the Minimum Energy Efficiency Standards. EPCs are the Energy Performance Certificates providing the efficiency rating.
- What are the RICS doing about sustainability?
The RICS Sustainability Report 2022 details:
- Taken views of professionals across the globe
- Demand for green buildings rising globally
- Climate Change rising up the agenda within property industry
- Brown discount = discount in rent for not being sustainable, green building
- What are the contents of an EPC?
- Address
- Floor area
- EPC Rating
- Technical information of energy provision
- Estimation of running costs
- Benchmarking information
What are the exemptions of EPCs?
o Religious, some listed properties
o Industrial units with low energy demand (no heating or cooling)
o Tenancy less than 6 months
o Exemptions must be registered with local authority and renewed every 5 years
o Commercial smaller than 50m²
What are the penalties for non-compliance with MEES?
o Policed by Local Authority
o Commercial:
Less than 3 months = 10% of RV or £5k max
More than 3 months = 20% of RV or £10k max
o Residential:
Less than 3 months = £2k
More than 3 months = £4k
What are Green Leases?
- Better Buildings Partnership
- Clauses ensuring tenants and landlord about the use of energy, water and waste
How will the Net Zero target impact the property sector?
- Better quality buildings because of a push towards more sustainable properties
- Potentially more retrofitting and refurbishments
- New methods of construction to reduce impact
- More impact on values of properties
