Valuing Sustainability

Question 1

What sections of the Red Book have regard to sustainability

Answer 1

VPGA 8

Question 2

What does the Red Book say in regards to sustainability

Answer 2

Must be recorded regardless of impact on value. Value should only be reflected where data indicates

Question 3

What does sustainability mean in the valuation context

Answer 3

Can refer to a number of characteristics such as physical (energy efficiency), social, environmental (flooding) and legislation (MEES)

Question 4

Name some sustainability benchmarking

Answer 4

BREEAM and EPC register

Question 5

What would you consider when reflecting sustainability in comparables

Answer 5

Cost saving through energy efficiency, decreased obsolescence, likely demand for sustainable buildings in the future. risk of flooding to the local area

Question 6

How might sustainability impact capitalisation rates

Answer 6

Greater potential demand for sustainability in the future makes it more of a secure investment subsequently giving the premises a lower yield

Question 7

Name some government initiatives for sustainability

Answer 7

Minimum Energy Efficiency Standards (MEES)
Carbon Reduction Commitment (CRC)
Energy Savings Opportunity Scheme (ESOS)
Part L building regulations

Question 8

What is a green lease

Answer 8

Contractual agreement between landlord and tenant to uphold and ensure sustainable requirements are met between both parties

Question 9

What are the benefits of a green lease

Answer 9

Lower running costs
Attract sustainably minded tenants
Increase in data collection

Question 10

What is retrofitting

Answer 10

The addition of new technology or features to older systems

Question 11

What section of the Building regulations relates to sustainability

Answer 11

Part L of the building regulations

Question 12

What is the definition of sustainability

Answer 12

Meeting the needs of the present without compromising future generations to meet their own needs

Question 13

What is the difference between an EPC and DEPC

Answer 13

An EPC shows the theoretical efficiency of a building, whilst an DEPC (data) shows the actual energy performance of the building from the previous year

Question 14

Are any properties exempt from having an EPC?

Answer 14

Listed property
Temporary property
Places of worship

Question 15

Which act brought into effect the MEES?

Answer 15

Energy Act 2011