RICS leadership to create greener homes

Achieving a zero-carbon future will not be possible unless we take serious and swift action to address one of the largest global contributors towards emissions – housing.

To demonstrate the scale of the challenge, in the UK simply heating homes accounts for 15% of the overall carbon emissions in the country.

It is obvious, that without significant reform to the housing market, the UK will fail to reach its climate change objectives.

If we break down the UK’s 30 million current homes, there are significant discrepancies in housing energy performance depending on tenure. Social homes and housing associations are typically the greenest in the UK followed by purpose-built student accommodation. With the introduction of Minimum Energy Efficiency Standards (MEES), the PRS sector will also see dramatic increases in energy performance over a short period.

However, the biggest tenure group, and poorest performing, is the owner-occupied sector - where 2 in 3 homes in the UK currently fail to achieve a minimum EPC C rating.  

RICS is investing significant resources and expertise to address the challenges facing the private sector and continues to work in collaboration with governments and property stakeholders to create long term solutions.

So, in a year when the UK hosts COP26, what are governments and RICS doing to address these challenges?

Government intervention 

Governments across the UK know policy levers and greater regulation will be one of the strongest tools available to them to influence positive change. RICS have been working with governments to develop, advise and influence a range of changes and proposals including:

• The introduction of MEES, a new minimum energy performance standard for private sector rental accommodation, helping to reduce emissions and the risk of fuel poverty.
• Working with UK Government to shape the proposals for mortgage lenders to achieve a mortgage portfolio EPC C average by 2030 and investigating funding streams available for retrofitting and energy work.
• Calling for, and supporting, Scottish Government work to review and reform the EPC rating system in Scotland, to ensure we have a measuring methodology that accurately reflects true energy usage, not just fabric.
• Exploring the benefits of cutting VAT to 5% to encourage home improvement work, increase energy efficiency and create jobs.

In the recent elections across the UK, RICS engaged with governments, administrations and parliamentarians to highlight how the built environment should be a priority for economic and green recovery from the Coronavirus pandemic.  

VALUER Project and the Red Book 

RICS is a partner in a UK-Government funded collaboration Valuations and Lending Underwriting Energy Reduction (VALUER) Project – alongside stakeholders from Rightmove, Monmouthshire Building Society and Sero Homes.

VALUER is seeking to explore opportunities to increase private home energy performance, with initiatives including an enhanced surveying methodology to assess suitable energy performance improvement measures and the role of green mortgage products.

Importantly, the project is looking to explore how house prices vary depending on the energy performance and the need to retrofit a property. With green mortgage products likely forming a significant part of the markets ability to become more sustainable, RICS is seeking out to understand how this will influence property prices and transactions.  

Home Survey Standard

Recognising the influential role RICS Home Surveys have in the home buying/selling process, our new RICS Home Survey Standard which came into force earlier this year now allows for greater assessment of energy performance matters.

As part of a Level 2 survey, the surveyor will review the most recent EPC and highlight any obvious discrepancies to the client.

Within a Level 3 Home Survey, the surveyor will also advise on the appropriateness of energy improvements recommended by the EPC and provide property-specific information in relation to energy efficiency.

Optimised Retrofit 

In Wales, partners across the property industry including RICS, the Welsh Government and RSL’s are part of an innovative, green homes housing programme called Optimised Retrofit. The landmark project is one of the first of its kind and seeks to develop the best data, technology, skills and resident and supplier engagement to deliver a robust retrofit programme.

Optimised Retrofit offers a wealth of learning, training, and action to combat climate change while developing low-carbon homes and creating significant opportunities available to RICS surveyors.

The first phase of the project is currently seeing more than 1,700 social homes go through retrofitting and transitioning to green, low carbon properties. RICS professionals have been given the opportunity to undertake free CPD training to develop and enhance their retrofitting skills, which is also opening future career opportunities and involvement in the project.