Energy & Sustainability in Property

Energy & Sustainability in Property

Energy and sustainability in property refer to the practices and measures implemented to reduce environmental impact, improve energy efficiency and enhance the overall performance of buildings throughout their lifecycle. This approach encompasses design, construction, operation and maintenance of properties, with a focus on minimising resource consumption and maximising long-term value.

Importance in Property

The significance of energy and sustainability in property has grown substantially due to several factors:

• Changing Occupier Needs: Tenants increasingly prioritise sustainable, energy-efficient spaces that promote wellbeing and productivity
• Investor Requirements: Sustainability credentials have become a key consideration for investors looking to future-proof their portfolios and align with ESG (Environmental, Social and Governance) criteria
• Lender Requirements: Financial institutions are incorporating sustainability factors into their lending decisions, often offering preferential terms for green properties
• Reputation and Demand: Sustainable properties tend to command higher rents, enjoy lower vacancy rates and benefit from enhanced market appeal

Key Considerations

When addressing energy and sustainability in property, several crucial aspects need to be considered:

• EPC Requirements: Energy Performance Certificates (EPCs) are mandatory for properties being sold or let, with minimum energy efficiency standards becoming increasingly stringent

• Investor Requirements: Many investors now have specific sustainability targets and reporting requirements for their property portfolios
• Bank Requirements: Lenders are increasingly factoring in sustainability metrics when assessing property values and loan terms
• Advice to Clients: Providing guidance on improving energy efficiency, implementing sustainable practices and meeting regulatory requirements
• Costs of Running Buildings: Focusing on reducing operational costs through energy-efficient systems and sustainable management practices

Relevant Standards

Several standards need to be considered across different stages of a property's lifecycle:

• For Construction: Building Regulations, BREEAM New Construction, LEED for New Construction
• For Development: Sustainable Urban Development standards, Green Building Codes
• For Existing Buildings: BREEAM In-Use, LEED Operations and Maintenance, Fitwell
• For EPCs

Future Homes Standard

Expected to be implemented in 2025, the Future Homes Standard aims to significantly reduce carbon emissions in new homes. It will require new build homes to be future-proofed with low carbon heating systems and high levels of energy efficiency. This standard will have far-reaching implications for the property sector, driving innovation in sustainable construction and design.