Sustainability

Question 1

How is the RICS helping introduce sustainability into practice?

Answer 1

• 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)

Question 2

What legally binding commitment has the UK government made on carbon dioxide emissions?

Answer 2

• 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

Question 3

What legislation requires all buildings in Europe to be subject to energy labeling and energy use reduction?

Answer 3

Energy Performance of Buildings Directive (EPBD)

Question 4

What did the UK government do in response to the Energy Performance of Buildings Directive (EPBD)?

Answer 4

• Amended the energy requirements contained in Part L of the Building Regulations
• Introduced Energy Performance of Building Regulations

Question 5

What are the FIVE key provisions of the Energy Performance of Buildings Directive (EPBD)?

Answer 5

1. Higher standards of energy conservation for new and refurbished buildings
2. Establishing a calculation methodology for the energy performance of all buildings
3. Minimum requirements for the energy performance of all buildings
4. Energy certification for all buildings when leased or sold
5. Mandatory inspection of boilers and air conditioning systems in buildings

Question 6

When is an EPC required?

Answer 6

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

Question 7

What properties are exempt from an EPC?

Answer 7

• 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

Question 8

What are the EPC requirements for marketing?

Answer 8

• Must be commissioned within 7 days of the commencements of marketing (28-day limit for procurement)
• 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

Question 9

What is included on the front page of an EPC?

Answer 9

1. Address of property and floor area
2. EPC certificate and 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 10

How long is an EPC valid for?

Answer 10

10 years unless the building is altered, after which a new EPC would be required

Question 11

Where would you find an EPC?

Answer 11

EPC online register holds EPCs available for inspection

Question 12

What are the penalties for non-compliance on displaying of EPCs? Who enforces the regulations?

Answer 12

• 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)

Question 13

What do the Minimum Energy Efficiency Standards (MEES) as set out in the Energy Efficiency (Private Rented Property) (England and Wales) Regulations, 2015 require?

Answer 13

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

Question 14

What are the exemptions for MEES regulation compliance?

Answer 14

• 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
• 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)

Question 15

Which MEES exemptions only last for 5 years and cannot be transferred on sale?

Answer 15

• 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

Question 16

Where must MEES exemptions be registered?

Answer 16

Exemptions must be pre-registered on the Local Authority Private Rented Sector Exemptions Register and renewed five-yearly

Question 17

What did the government’s consultation on the expansion of MEES find in October last year?

Answer 17

• Preferred trajectory: minimum EPC rating of B by 1 April 2030
• Alternative trajectory: minimum EPC rating of C by 1 April 2030

Question 18

What are the penalties for non-compliance with MEES?

Answer 18

• 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

Question 19

Who polices non-compliance with MEES?

Answer 19

Local authority

Question 20

What is the Energy Savings Opportunity Scheme (ESOS)?

Answer 20

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)

Question 21

What does the Energy Savings Opportunity Scheme (ESOS) require of participating organisations?

Answer 21

• 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

Question 22

What are the Heat Network (Billing and Metering) Regulations, 2014?

Answer 22

• Provision of communal heating systems in multi-occupied commercial and residential schemes and to district heating systems
• Final consumers must be provided with accurate meter reading / bill information and competitively priced individual meters

Question 23

What is the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme?

Answer 23

• CRC is to be scrapped following the Government’s Business Energy Taxation Review (2015)
• Was replaced by the Climate Change Levy (CCL) in 2019

Question 24

What is the Climate Change Levy (CCL)?

Answer 24

• Tax on energy delivered to non-domestic users in the United Kingdom. It was introduced as an incentive to increase energy efficiency within businesses and so to reduce carbon emissions
• Consumers are charged by their energy providers who forward the c.£1.9 bn per annum to the UK Treasury
• Energy generated from renewable sources is exempt from CCL

Question 25

What are Display Energy Certificates (DECs)?

Answer 25

* Display the actual energy used and carbon dioxide emissions * Required for public buildings over 250 sqm

Question 26

What does BREEAM stand for?

Answer 26

Building Research Establishment Environmental Assessment Method

Question 27

What is a BREEAM rating?

Answer 27

A voluntary environmental assessment tool to rate new and refurbished commercial and residential buildings. They are commonly being required to support planning applications

Question 28

What are some of the environmental standards that BREEAM assessors have reference to?

Answer 28

* Energy consumption * Water use * Transport links * Waste management * Health & wellbeing

Question 29

What are the FIVE BREEAM ratings?

Answer 29

* Pass * Good * Very good * Excellent * Outstanding

Question 30

Other than BREEAM, what are some of the other building environmental assessment tools?

Answer 30

* LEED (Leadership in Energy and Design – USA) * DGBN (Germany) * HQE (France) * NABERS (Australia)

Question 31

How did the government amend the Climate Change Act 2008 in 2019?

Answer 31

Required the UK to achieve "net zero carbon" by 2050

Question 32

What have a number of leading UK property funds and REITs done to commit to achieving net zero carbon by 2050?

Answer 32

* Formed the Better Buildings Partnership (BBP) pledge. * Have published various toolkits to provide guidance to owners and occupiers on how to achieve reductions in their energy, water and waste in buildings

Question 33

What is included in the UK Green Building Council (UKGBC) framework to achieve a net zero carbon building?

Answer 33

* Establish Net Zero Carbon Scope – needs to be across the whole life of buildings i.e. carbon emissions associated with construction, use, refurbishment and demolition * Reduce Construction Impacts – developers need to focus on changing the material they use as well as building (and their systems’) designs * Reduce Operation Energy Use – landlords need to consider how to best retrofit efficiency measures into their buildings and how to work with occupiers to make these work * Increase Renewable Energy Supply on-site and offsite * Offset any Remaining Carbon – e.g. planting trees. This is the last resort

Question 34

How can the health and wellbeing of building occupants be measured?

Answer 34

* Some developers are using the WELL Building Standard * This is a standard for buildings to be rated in respect of spaces that can optimise the health and mental wellbeing of occupiers

Question 35

What is "place making"?

Answer 35

Ensuring buildings and their environs contribute positively to occupiers and the community

Question 36

What is a green lease?

Answer 36

* Will typically seek to ensure that landlords and tenants share information about the use of energy, water and waste arising in a building * The Better Buildings Partnership (BBP) has a Green Lease Toolkit with best practice recommendations for model forms of clauses

Question 37

What is the RICS Ska Rating scheme?

Answer 37

Measures a building’s fit out sustainability, with a gold, silver or bronze rating awarded

Question 38

What efficient construction solutions are developers using?

Answer 38

* Renewable materials and technologies such as solar, wind, biomass and heat pumps to achieve a low carbon emission solution and a reasonable payback period * The building aspect and use of natural daylight to take advantage of solar gain * Effective energy management & monitoring systems and increased awareness of other areas of sustainable management relating to waste, water and procurement of good and services