Sustainability

Question 1

What are the three pillars of sustainability?

Answer 1

1. Social
2. Environmental
3. Economic

Question 2

What are the changes to the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 with effect from 1st April 2023?

Answer 2

• all let properties must not be continued to be let with a ‘Substandard EPC’ i.e. an F or a G

Question 3

What are the impact of the changes on the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 to commercial property owners?

Answer 3

• Need to undertake a check on all EPC’s within their portfolio, not just where there has been a lease renewal.
• Financial implications if not compliant, up to £50,000 for commercial

Question 4

What does BREEAM stand for and what is it used for?

Answer 4

Building Research Establishment Environmental Assessment Method

• It’s a method of assessing, rating and certifying a building’s environmental sustainability.

Question 5

What are the penalties for non-compliance with EPC’s?

Answer 5

Fined between £500 and £5,000 based on the rateable value of the building if you don’t make an EPC available to any prospective buyer or tenant.

Question 6

Can you name some properties that are exempt from requiring an EPC?

Answer 6

• Listed building
• Place of worship
• a detached building with a total floor space under 50 square metres

Question 7

Under what circumstances would you be able to apply for an EPC exemption?

Answer 7

• Where the property is legally required to have an EPC and it cannot be improved to meet the minimum standard of EPC band E for one of the reasons set out below:
• 7 year payback
• cost of purchasing and installing does not meet the 7 year payback test which is where the expected value of savings on energy bills that the measure (or package of measures) is expected to achieve over a period of 7 years are less than the cost of repaying it
• All improvements made
• Where a landlord has made all the relevant energy efficiency improvements that can be made (or there are none that can be made), and the property remains below EPC E
• Wall insulation exemption
• Third-party consent exemption
• e.g. installation of solar panels requiring planning permission
• Property devaluation exemption
• Where a report prepared by an RICS surveyor that provides evidence that the installation of relevant measures would devalue the property by more than 5%
• Temporary exemption due to recently becoming a landlord (only lasts for 6 months)

Question 8

How would you deal with registering an EPC exemption?

Answer 8

• advise the client that the exemption must be registered by the landlord (or an agent for the landlord) before it can be relied on

All exemptions must include:
- the address of the relevant rental property
- which exemption type the landlord is registering
- a copy of a valid Energy Performance Certificate for the property

• check that it meets the requirements of the exemption.
• register the exemption on the PRS exemptions register.

Question 9

What is an ESG? Can you provide some examples?

Answer 9

ESG stands for environmental, social and governance. It’s a set of standards measuring a business’s impact on society, the environment, and how transparent and accountable it is.

E.g.
- use renewable energy
- reduce carbon footprint
- minimise waste
- customer satisfaction
- broad diversity and structure

Question 10

What measures does Brown & Co undertake to become more sustainable?

Answer 10

• Going paperless
• Recycling points
• LED lighting
• Electric car policy
• Cycle to work scheme
• Automatic lights