Sustainability Flashcards
What is an EPC?
Energy Performance Certificates are a rating scheme to summarise the energy efficiency of buildings. The building is given a rating between A-G and will include tips on the most cost-effective ways to improve energy performance.
Why do we have Energy Performance Certificates (EPCs)?
The EU Directive: Energy Performance of Buildings Directive (2010); which in lead to the UK Government implementing the Energy Performance of Buildings (England & Wales) Regulations (2012).
Where do you find EPCs?
On the EPC register from the Ministry for Housing Communities and Local Government, there is a domestic and non-domestic register.
What are the Five provisions of the Climate Change Act?
- Higher standards of energy conservation for new and refurbished buildings.
- Establishing a calculation methodology for the energy performance of all buildings
- Minimum requirements for energy performance of all buildings
- Energy certification for all buildings when leased or sold.
- Mandatory inspection of boilers and air conditioning systems in buildings.
When are EPCs Required?
When a commercial buildings over 50m² is;
* Newly built
* Sold / leased
* Leased for longer than 6 months
* Refurbished
* Heating/air conditioning is altered
* Lease is assigned / sub-let
Under what Circumstance might you not need an EPC?
If the building is listed, buildings that have no heating, religious buildings, tenancy less than 6 months and no security of tenure, temporary buildings (less than 2 years), buildings that are due to be demolished, residential properties occupied for less than 4 months per year.
What are the requirements in relation to EPCs when marketing a property?
You must commission the EPC within 7 days of beginning the marketing of the property (28 day limit for procurement). Agents are responsible for this, and only the actual energy rating is required but where space the graph should be shown. All online marketing material must have a link to show the front page of the EPC document.
What is included on the front page of an EPC Certificate?
Property address, Floor area, EPC reference number, Technical information on the property, estimated running costs, energy performance rating, benchmarking information.
What are the Penalties for Non-Compliance with EPCs on marketing material?
Local authority will fine you £200 for marketing a residential property without an EPC. For commercial the limit is 12.5% of the Rateable Value of the Property (Collared at £500, and Capped at £5,000).
What are the changes that are happening to private rented property with regard to EPC rating?
Under the Energy Efficiency Regulation 2015 – New leases will not be able to be granted on properties (commercial and residential) with an EPC rating of F or G, as of the 1st April 2018. As of the 1st April 2023 for existing leases (April 2020 for residential).
Under what Circumstances would you be exempt from MEES?
- If a property doesn’t need an EPC (places of worship, tenancy more than 99 years, low energy demand buildings etc…)
- Industrial units with low energy demand (e.g no heating)
- If increasing the EPC rating to E isn’t feasible even when all possible improvement with a payback of 7 years or sooner have been made. Quotes obtained from 3 energy assessors.
- When the devaluation case can be proven, where improvements would reduce the market value of a property by more than 5%.
- Residential Landlords are required to spend £3,500 form April 2019 to bring the property up to E, if they do so and it doesn’t come up to E they can apply for exemption.
- Exemptions last 5 years and can’t be transferred at sale.
What are the Penalties for Non-Compliance with MEES?
Failure to comply with MEES (2015) will result in fines of:
* Non-domestic - If breach is less than 3 months: £5,000 or if great 10% of the rateable value (up to max of £50,000)
* Non-domestic - If breach is more than 3 months: £10,000 or if greater 20% of the rateable value (up to a max of £150,000).
* Domestic breach – less than 3 months = £2,000
* Domestic breach – over 3 months = £4,000
* Residential Landlords are required to spend £3,500 form April 2019 to bring the property up to E, if they do so and it doesn’t come up to E they can apply for exemption.
* MEES is Policed by Local Authority.
What are the potential changes to MEES regime?
The UK government has undertaken a consultation and indicated that the minimum MEES threshold will rise from E to C by 2027 and B by 2030. Given commercial leases, this will require energy efficiency upgrades to premises as and when available.
EPC must be registered on a new database by April 2025, Properties with a registered EPC below a C have to be improved by 2027. By April 2028, another EPC must be registered. Same thing by needs to comply to hit B.
What impact can property have on the environment?
The built environment accounts for 40% of emissions globally
What is sustainable development?
Development that meets the needs of the present generation, without compromising the ability of future generations to meet their own needs
What is the RICS doing to improve sustainability?
RICS action agenda:
* Building passport – data platform to host all building related data, from design and planning through to demolition
* RICS Building Carbon Database
* Established World Built Environment Forum – to gather experts from the sector and share knowledge
What does an EPC do?
- Summarises a building’s energy efficiency and provides advice on how to improve its energy efficiency
- Ranks buildings from A to G with ‘current and potential ratings’
- Valid for 10 years
- Cost up to £120
How could the EPC of a building be improved?
- Insulation for your floor, roof, loft, or walls
- Double glazing
- Solar panels
- LED lighting
- Improve heating system
What does BREEAM stand for and what does it mean?
Building Research Establishment’s Environmental Assessment Method:
* International scheme
* 3rd party certificates by impartial experts
* Range from acceptable to outstanding (pass, good, v good, excellent, outstanding)
* Has a tool which focuses on neighbourhood development
* Energy use, water use, transport links, well-being
* Voluntary and for commercial buildings in UK
What does BREEAM take into account?
- Energy
- Health and well being
- Innovation
- Land use
- Materials
- Management
- Pollution
- Transport
- Sustainable management of construction, operational, repairs and maintenance, avoid landfill
What is MEES? Provide a summary of it and when it was published and came into effect?
- Minimum Energy Efficiency Standards (2015)
- Came into force in 2018
- All properties being let or sold in England or Wales must have a minimum EPC rating of E or above
- Policed by Local Authority
- Some exemptions (small, listed, religious, temporary or to be demolished)
- Fines for non-compliance
Are there plans to change EPC rules?
EPCs for commercial buildings to be C and above by 2027 and B and above by 2030. All properties to be zero carbon by 2050
When are EPCs required?
All commercial buildings over 50 sqm. Applies to tenancies 6 months to 99 years.
When are EPCs not required?
Places of worship, super low energy efficient buildings (e.g., industrial warehouse), temporary buildings, some listed buildings not all
What must be on the front page of an EPC?
- Address of property and floor area
- EPC certificate reference number
- Technical information on the property’s energy provision
- Estimation of energy running costs
- An energy performance rating from A + to G
- Benchmarking information
What legislation in the UK is aimed at tackling climate change?
Climate change act 2008:
* Amended in 2019 to require UK to achieve ‘net zero carbon’ by 2050
How can you make a commercial building more sustainable?
- Insulation
- Airtightness
- Use thermal mass
- Make best of natural light
- Use sustainable materials to reuse, recycle and repair
- Use renewable technologies
- Minimise waste and dispose of sustainably
What is COP26?
Conference of the Parties 26:
* Will bring parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change
What is the penalty for failing to make an EPC available to a prospective buyer or tenant?
Fixed in most cases at 12.5% of rateable value of building (min of £500 and max of £5,000, fixed at £750 where formula cannot be applied)
What are some key considerations regarding sustainability?
- Our government in the UK has a legal commitment under the Climate Change Act to reduce carbon emissions
- Buildings are major emitters of carbon – approx. 40% of all carbon emissions come from built environment
- Valuers should assess the level of risk posed by MEES and consider how rent, yield, value, and growth will be affected
- “qualifying improvements” may exempt some landlords, if they have taken all actions possible the improve the efficiency:
Limited to measured that are ‘permissible, appropriate, cost effective’
o Permissible: consent is not given for alterations
o Appropriate: if it would reduce value of 5%
o Cost effective: 7-year rule