Sustainability (Level 2) - SOE Specific Flashcards
What’s an EPC?
Energy Performance Certificate
What does an EPC include?
Address
Certificate number
Current rating
Guidance/recommendations on how to improve rating
When do you need to display an EPC?
total floor area above 500sqm
Frequently visited by the public
EPC has already been produced for building sale, rental or construction
How does EPC impact upon value?
A higher rating not only ensures lower energy bills but also positions the property as eco-friendly, increasingly a significant factor in determining commercial property value.
What buildings are exempt from having an EPC (MEES)?
- Tenancies under 6 months
- Tenancies over 99 years
- Listed buildings
- Buildings with no heating
- Religious buildings
- Temporary buildings
- Buildings due to be demolished / redeveloped
What are the penalties for not having an EPC?
If do require EPC but not got one, fine is 12.5% of RV
Tell me about key sustainability legislation you are aware of?
Energy Act 2023
Climate change act 2008
Environment Act 2021
What is the UK legislation for tacking climate change?
Climate Change Act 2008
What is the climate change act 2008?
The Act contains a legally binding goal for reducing UK greenhouse gas (GHG) emissions to Net Zero by 2050.
What is the latest amendment of Climate Change Act 2008?
2019 update to achieve Net Zero Carbon by 2050
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 2011 set out?
It introduced a legal framework to improve energy efficiency in buildings, both domestic and commercial.
Most importantly, it introduced MEES – the Minimum Energy Efficiency Standards.
From 1 April 2018, landlords could not grant new leases of commercial properties with an EPC rating below E (F or G).
From 1 April 2023, this rule extended to all existing leases.
Future MEES proposals (subject to consultation) may raise the minimum requirement to:
EPC C by 2027
EPC B by 2030
What does Global Professional Guidance Note Sustainability and Commercial Property Valuation 2021 state?
Valuers must be fully aware of ways sustainability may impact on levels of value they report
E.g. 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 etc.
Is there any RICS guidance on sustainability?
Sustainability and ESG in Commercial Property Valuation and Strategic Advice, 3rd Edition, 2021 (guidance note)
RICS Global Professional Guidance Note: Sustainability and Commercial Property Valuation (2017)
RICS Environmental Risks and Global Real Estate, 2018
RICS Sustainability Report 2023
What different codes of practice are you aware of for measuring sustainability?
BREEAM (Life cycle assessment)
BUILDING RESEARCH ESTABLISHMENT ENVIRONMENTAL ASSESSMENT
What does BREEAM do? Whats its purpose?
Sets best practice standards for the environmental performance of buildings through specification, design, construction and operation.
Assessment is undertaken by a licensed assessor and evaluates categories (EG energy, water use, pollution etc) and then rates building and provides certification (Outstanding, excellent, very good, good, pass, unclassified)
what are the 9 categories of BREEAM?
Management – Project management, commissioning, and handover processes.
Health and Wellbeing – Occupant comfort, indoor air quality, lighting, and thermal comfort.
Energy – Operational energy use, CO₂ emissions, and efficiency.
Transport – Accessibility to public transport and travel impact.
Water – Water efficiency and consumption reduction.
Materials – Environmental impact of construction materials.
Waste – Construction and operational waste management.
Land Use and Ecology – Ecological value of the site and enhancement.
Pollution – Minimising building-related pollution (e.g. NOx, light, noise).
What are some advantages of BREEAM?
Increases asset value, reduces operating costs and good for marketing!
BREEAM rated buildings achieve 20% premium on rented/sales prices
Whats a SKA Rating?
An RICS Environmental assessment method to benchmark and standardise fit outs
What are MEES?
Minimum energy efficiency standards (MEES) were introduced by the government to improve the quality and increase the energy efficiency of the worst performing privately rented buildings. - England and Wales
Timeline of MEES?- these may have changed
1st April 2023 - Landlord cannot continue letting a building/unit with EPC below E
1st April 2027 - Minimum EPC of C (anticipated)
1st April 2030 - Minimum EPC of B (anticipated)
How does MEES impact your role?
Requirement to understand Landlord responsibilities and ensure minimum energy efficient standards of properties to both let and continue letting.
Affects alterations - it is reasonable to reject if negatively affecting the EPC
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
Devalue property by 5% or more or works could damage property
Exemptions last FIVE years and need to be logged on centralised Register
Cheapest improvement is £3,500
When can LL let building with EPC F or G?
If registered on PRS Exemptions Register EG made all improvements and still below an E
What is the penalty for not complying with MEES when should be?
£5,000 - £50,000 (10% of RV) for properties with less than 3 month rental
£10,000 - £150,000 (20% of RV) for properties with more than 3 month rental
What are the implications of MEES 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 procedures does your firm implement to promote sustainability?
Recycling
Energy efficient lighting (motion sensors, LEDS)
No waste to landfill policy
Company cars moving to hybrid/Electric vehicles
Name some sustainable building methods?
Use of recycled materials, reclaimed timber etc.
Ground source heat pumps
Air source heat pumps
Solar Panels
Green roofs
EV chargers
What is a green lease?
Standard lease with additional clause included which provide for the management and improvement of the Environmental Performance of a building by both owner and occupier
What is the purpose of a Sustainability Checklist?
Measuring stick for staff and council/board to ensure development proceeds in accordance with the community’s sustainability values.
