Sustainability

Question 1

What are the 3 pillars of sustainability?

Answer 1

Social – e.g. quality of life, community engagement
Environmental – energy, pollution, emissions, plastics, carbon footprint
Economic – risk management, economic health, making a profit

Question 2

How does NHS PS incorporate these?

Answer 2

Social – Workwell initiatives
Environmental – Reduce printing, reusable cups
Economic – Compliance department, conflicts of interest management, training

Question 3

What is the Brundtland report?

Answer 3

Published in 1987 by the UN. Defined the principles of sustainable development.

Question 4

What is its definition of sustainability?

Answer 4

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Question 5

What is the important role sustainability plays in real estate?

Answer 5

As surveyors, we are uniquely placed to steer the built environment towards more sustainable practices.
Important to make buildings more sustainable to help meet carbon emission targets (cut by 100% - increased target in 2019 - under 2008 Climate Change Act), to reduce the costs involved in running a building, and to meet social/cultural demand for more sustainable building.

Question 6

How do you make clients aware of this?

Answer 6

Clients becoming more aware but try to raise awareness in our advice.

Question 7

How does RICS help to encourage sustainability in practice?

Answer 7

• Research, best practice statements and training.
• Best practice statement: Guidance Note, Sustainability and Commercial Property Valuation 2013.
• Supporting UN Sustainable Development Goals

Question 8

What are some ways you can make a building more sustainable?

Answer 8

Existing buildings; key upgrades including replacing old services with more energy efficient installations such as heating
New; effective insulation, use of natural light, use green and sustainable building materials

Question 9

What are the MEES and who do they apply to?

Answer 9

Make it unlawful to let a building unless it has a minimum EPC rating of E.
Applies to all landlords. For commercial applies to leases between 6 months and 99 years.

Question 10

What legislation is MEES under?

Answer 10

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015, in accordance with the Energy Act 2011

Question 11

When did the MEES take effect and what requirements are already adopted?

Answer 11

Effective for all NEW leases (commercial and resi) from 1 April 2018. This includes lease renewals and extensions.
Existing leases effective 1 April 2020 (Residential) and 1 April 2023 (Commercial)

Question 12

What are the exemptions from MEES?

Answer 12

• Places of worship
• Industrial or workshops with low energy demand (no heating or cooling)
• Tenancy less than 6 months with no security of tenure
• Tenancy more than 99 years
• Not feasible to improve EPC rating to E or above even when all possible improvements with payback of 7 years or sooner have been made (3 quotes from energy assessors needed)
• Resi - where landlord spends £3,500 but is unable to bring rating up to an E.
• Devaluation - reduce MV by more than 5%
• When consent (tenant, landlord LPA) is refused
• (Last 4 exemptions only last 5 years, not transferable).
  Exemptions must be registered on the LA Private Rented Sector Exemptions Register and renewed 5 yearly.

Question 13

What are the implications of MEES? How has it affected your area of practice?

Answer 13

Does affect all leases, renewals and sub-letting.

Doesn’t affect sale of buildings or assignment of lease.

Question 14

What are the penalties for non-compliance with MEES? Who polices it?

Answer 14

• Where a breach has lasted less than 3 months - up to £5,000 or (if greater) 10% of the Rateable Vale with a max penalty of £50,000
• Where a breach has lasted more than 3 months, up to £10,000 or (if greater) 20% of the Rateable Value with a maximum penalty of £150,000
• Policed by local authority

Question 15

When are Energy Performance Certificates required?

Answer 15

Needed whenever a property is built, refurbished (when heating/air con/ ventilation is altered), sold or rented (on leases between 6 months and 99 years, for sub-letting and assignment).
Required for all commercial buildings over 50 sqm.

Question 16

What properties are exempt from obtaining Energy Performance Certificates?

Answer 16

• Listed buildings
• Religious buildings
• Buildings with no heating
• Buildings due to be demolished or redeveloped
• Temporary buildings

Question 17

If you are marketing a property, when must an EPC be commissioned?

Answer 17

Ensure the EPC is comissioned BEFORE marketing. Typically 7 days procurement. A further 21 days is allowed if after
using all reasonable efforts the EPC cannot be obtained within seven days.

Agent’s responsibility to procure.
Rating graph should be displayed on marketing material, and a link must be included to front page from online marketing material.

Question 18

What is included on the front page of an EPC?

Answer 18

1. Address of property and floor area
2. EPC certificate reference number
3. Technical information on the property’s energy provision
4. Estimation of energy running costs
5. An energy performance rating from A+ to G.
6. Benchmarking information

Question 19

Under what legislation if an EPC required?

Answer 19

The Energy Performance of Buildings (England and Wales) Regulations 2012 under the Energy Act 2011.

Question 20

What are the penalties if you do not have a valid EPC? Who polices it?

Answer 20

Commercial: 12.5% of the Rateable Value, min.£500 to £5,000
Residential: £200 fixed penalty
Local authority Trading Standards polices

Question 21

What is the Climate Change Levy?

Answer 21

Tax on energy used by businesses. Charged by energy provider who pass it onto UK Treasury. No tax for renewable sources.

Question 22

What are the drivers of sustainability?

Answer 22

Ethical driver – it’s the right thing to do
Legal – there is legislation in place
Economic – affects things like tenant attitude, Market Rent

Question 23

What surveys have you done in your work relating to sustainability

Answer 23

Ecological Appraisal
Environmental Impact Assessment
Air Quality Assessment

Question 24

How does placemaking link to sustainability?

Answer 24

Developers are focusing on ensuring that development schemes contribute positively to communities, occupiers and reduce negative environmental impacts. They do this by considering layout, using renewable materials and technologies, make use of solar gain, assessing density, including greater green space.

Question 25

What does BREEAM stand for?

Answer 25

Building Research Establishment Environmental Assessment Method

Question 26

What is the purpose of BREEAM?

Answer 26

• A voluntary assessment tool to rate the new and refurbished commercial and residential buildings.
• A building’s environmental impact is rated by BREEAM assessors by reference to the nine environmental weightings which include; energy consumption, water use, transport links, waste management and health and wellbeing.

Question 27

How is a building rated for BREEAM?

Answer 27

Outstanding: 85 or more 
Excellent: 70 or more
Very Good: 55 or more
Good: 45 or more
Pass: 30 or more 
Unclassified: Less than 30

Question 28

What are the bands for EPCs and what’s the lowest rating?

Answer 28

A – G. Out of 100. Lowest score is 1.

Question 29

What is the WELL building standard?

Answer 29

WELL Building Standard - This is a standard for buildings to be in respect of spaces that can optimise the health and mental wellbeing of occupiers.

Question 30

What are the key principles of the Energy Act 2011?

Answer 30

• The Energy Act 2011 (c 16) is a UK Act of Parliament relating to UK enterprise law and energy in the UK.
• The Energy Act 2011 (“the Act”) placed an obligation on the Secretary of State for Energy and Climate Change to introduce regulations that would prevent a landlord letting a property which had an EPC below a rating set out in, in (at the time) unpublished, regulations which spawned the introduction of…. MEES

Question 31

What are some of the UN Sustainable Development Goals?

Answer 31

1. No poverty
2. Zero Hunger
3. Good health and well being
4. Quality Education
   - Sustainable cities and communities
   - Climate action
   - life on land
   - life below water

Question 32

How will the RICS help meet SDG goals?

Answer 32

• Construction and real estate development traditionally offer a pathway out of poverty through fostering economic growth and employment opportunities.