Sustainability L2 Flashcards
What is 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 airplanes
Limit plastic consumption - has huge impact on environment
What does Global Professional Guidance Note Sustainability and Commercial Property Valuation state?
Valuers must be fully aware of ways sustainability may impact on levels of value they report
EG impact of climate change on location, physical characteristics of building, attitudes of investors and occupiers
These factors all impact market rent, market value, investment value and fair value
What are building regulations?
A set of regulations and standards that all new buildings must be built to
Structure, fire safety, ventilation, drainage and waste disposal, conservation of fuel and power, electrical safety etc
What does The Energy Act 2015 set out?
Unlawful to let properties with EPC of F or G from April 2018
Unlawful to continue to let from April 2023
Why does the energy act impact PMs?
Our job is to maintain or increase value of assets, so PM needs to advise LL to spend money upgrading property to good EPC rating so they are lettable / sellable
Where do MEES apply?
England and Wales
What does EPC show?
Current rating
Guidance on how to improve
What works of improvement can be carried out
What EPC could be if works were carried out
Where does MEES not apply?
Leases of 6 months or less, or 99 years or more
What buildings do not require EPC?
Listed buildings, buildings with no heating, religious buildings, temporary buildings (occupied less than 2 years), buildings due to be demolished/redeveloped, and residential units not occupied for more than 4 months of the year
Stand alone buildings less than 50 sqm
If do require EPC but not got one, fine is 12.5% of RV
When are LL’s exempt from complying with MEES?
All cost effective energy efficiency improvements have been carried out
Consent to undertake works is refused by third party EG Local Authority or current tenant
Experts provide written advice that improvement would devalue property by 5% or more or works could damage property
Exemptions last FIVE years and need to be logged on PRS Register created by Government
If cheapest improvement is £3,500 + (high cost)
- If a landlord can prove that they have undertaken energy efficiency works with a payback period of 7 years
- If a third party does not allow landlords to do the works
What is the penalty for not complying with MEES when should be?
For breaches of MEES that last less than 3 months - a fine of £5,000, or 10% of the property’s rateable value, up to a maximum of £50,000.
A breach of MEES regulations lasting longer than 3 months - a fine of the higher of £10,000 or 20% of the rateable value of the property, up to £150,000.
What are the implications for LLs?
Some properties will be illegal to let unless they are upgraded
Valuations will be affected and marketability will be diminished
Rent reviews could be affected
Implications for dilapidations may come about
What did Climate Change Act 2008 set?
Government commitment to cut UK CO2 emissions by 80% on 1990 levees by 2050
What is the latest amendment of Climate Change Act 2008?
2019 update to achieve Net Zero Carbon by 2050
Who do Heat Network Regulations apply to?
Any ‘heat supplier’
This could be a Landlord if there is communal heating IE
There is distribution of thermal energy (heat, steam, hot water, chilled liquids)
Thermal energy is used to provide hot water, heating or cooling
Building is occupied by more than one customer
Landlord apportions the bills
If Landlord is heat supplier, what must they do?
Notify the Office for Product Safety and Standards (OPSS) and provide information including:
Location of communal heating, estimated capacity, how many dwellings are being supplied etc
This must be done every 4 years
There is a template available for providing information
What is the purpose of a Sustainability Checklist?
Encourage new development and buildings that support community sustainability objectives
Provides local governments with process to meet sustainability and climate change objectives
What does BREEAM stand for?
Building Research Establishment Environmental Assessment Method
Longest established method of assessing, rating and certifying buildings
Used in over 50 countries
How does BREEAM work?
Undertaken by independent licenced assessors, and evaluates categories (EG energy, water use, pollution etc) and then rates building and provides certification (Pass, Good, etc)
