Sustainability Flashcards
How is the RICS helping introduce sustainability into practice (R, BPS, BPT, EU)?
- Evidence-based research
- Best practice statements e.g. Guidance Note on Sustainability and Commercial Property Valuation, 2013
- Best practice training
- Energy use in clients’ buildings and associated regulation (e.g. energy performance certification and minimum performance standards)
What legally binding commitment has the UK government made on carbon dioxide emissions, and how was it amended in 2019?
- UK Government made a legally binding commitment to cut the UK’s carbon dioxide emissions by 80% on 1990 levels by 2050 (Climate Change Act 2008)
- This has seen been amended in 2019 for the UK to achieve “net zero carbon” by 2050
What legislation requires all buildings in Europe to be subject to energy labeling and energy use reduction?
Energy Performance of Buildings Directive (EPBD)
What did the UK government do in response to the Energy Performance of Buildings Directive (EPBD)?
- Amended the energy requirements contained in Part L of the Building Regulations
- Introduced Energy Performance of Building Regulations
What are the FIVE key provisions of the Energy Performance of Buildings Directive (EPBD) (HS, ECM, MR, EC, MIBAC)?
- Higher standards of energy conservation for new and refurbished buildings
- Establishing a calculation methodology for the energy performance of all buildings
- Minimum requirements for the 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 is an EPC required (size, durations/transaction types, building works)?
EPC required for all commercial buildings over 50 sqm:
- When it is newly built, sold or let for a term of more than 6 months (& less than 99 years). Also applies for sub-letting and assignments of leases
- When it is newly refurbished and heating, air conditioning or ventilation services are altered, and/or the building is subject to Building Regulations for construction
What properties are exempt from an EPC (LB, NH, R, T, D/R, R (duration))?
- Listed buildings
- Buildings which have no heating
- Religious buildings
- Temporary buildings
- Buildings due to be demolished/redeveloped
- Residential units not occupied more than 4 months a year
What are the EPC requirements for marketing (commissioned, responsibility, particulars, online)?
- Ensure the EPC is commissioned BEFORE marketing. Must be commissioned within 7 days of the commencements of marketing (28-day limit for procurement if after using all reasonable efforts the EPC cannot be obtained within 7 days)
- Agents are responsible for procuring EPCs
- Only the actual energy rating is required to be displayed on property and advertisements. Where space allows, the graph should be shown
- All online marketing material must have a link to the EPC to show the front page of the EPC
What is included on the front page of an EPC (A, FA, C/RRN, TI, E RC, R, B)?
- Address of property and floor area
- EPC certificate and 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
How long is an EPC valid for, and subject to what?
10 years unless the building is altered, after which a new EPC would be required
Where would you find an EPC?
EPC online register holds EPCs available for inspection
What are the penalties for non-compliance of (not getting or displaying?) commercial EPCs? Who enforces the regulations?
- Local authorities’ Trading Standards teams enforce the regulations
- Commercial: max penalty is equal to 12.5% of the RV of the building (a minimum of £500 and maximum of £5,000 fine)
What do the Minimum Energy Efficiency Standards (MEES) as set out in the Energy Efficiency (Private Rented Property) (England and Wales) Regulations, 2015 require?
Minimum EPC rating of Level E. Implementation was in stages:
- New leases from 1 April 2018 (for both commercial and residential properties) to include lease renewals/extensions
- All existing leases from 1 April 2023 for commercial properties
What are the exemptions for MEES regulation compliance (1 obvious, POW, LE, duration/security, PB (subject to obtaining what), resi. cost, DV, C, RL), and which only last for 5 years and cannot be transferred on sale?
Normal EPC exemptions:
- If a building does not need an EPC
- Places of worship
- Industrial units or workshops with a low energy demand (e.g. no heating or cooling)
- Where the tenancy is less than 6 months with no security of tenure
- Where the tenancy is for more than 99 years
5 year/no transfer exemptions:
- When it is not feasible to improve the EPC rating to E or above even when all possible improvements with a payback of 7 years or sooner have been made. 3 quotes for relevant works must be obtained from energy assessors
- Landlords of residential properties are required, from April 2019, to spend up to £3,500 to improve the energy efficiency of properties. A landlord who spends the full £3,500 on a property but is unable to bring the rating up to E would be entitled to register an exemption
- When the devaluation case can be proven i.e. improvements would reduce market value of a property by more than 5%
- When third-party consent from a tenant, landlord or planning authority for improvements is refused or conditionality cannot be reasonably met by the landlord
- Certain types of residential lease (e.g. company lets, second homes, very high or very low rents) and landlords (i.e. public sector and social landlords)
Where must MEES exemptions be registered/renewed?
Exemptions must be pre-registered on the Local Authority Private Rented Sector Exemptions Register and renewed five-yearly
What did the government’s consultation on the expansion of MEES find in October last year (preferred/alternative, by what date), and what changes may be made to Part L carbon factor and the Reference Building, and with what consequence?
- Preferred trajectory: minimum EPC rating of B by 1 April 2030
- Alternative trajectory: minimum EPC rating of C by 1 April 2030
o Anticipated new Part L to use carbon factor for grid electricity significantly below current factor, resulting in improvements for electric heating.
o Potential update to Reference Building that generates EPC rating – change from gas for heating/hot to electricity, resulting in increased difficulty for gas heated buildings to meet minimum standard.
What are the penalties for non-compliance with MEES (+- 3 months, %/max. penalty)?
- Breach has lasted less than 3 months – up to £5,000 or (if greater) 10% of the Rateable Value with a maximum 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
Who polices non-compliance with MEES?
Local authority
What is the Energy Savings Opportunity Scheme (ESOS)/ who applies to (employees, turnover, annual balance sheet)?
Energy assessment scheme that is mandatory for large organisation in the UK (more than 250 employees, turnover more than €50m and an annual balance sheet total of €43m)
What does the Energy Savings Opportunity Scheme (ESOS) require of participating organisations (M, C, R)?
- Measure total energy consumption across buildings, transport and industrial activities
- Conduct energy audits to identify cost-effective energy efficiency recommendations
- Report compliance to the Environment Agency
