Energy Efficiency - industry chiefs demand rental sector action

The British Property Federation, which typically has relatively little to say about the private rental sector, has issued a series of demands to help improve energy efficiency.

Some of the demands are on government - most significantly, a call for clarity to be given as soon as possible to the proposed changes to the Minimum Energy Efficiency Standard regulations for the private rental sector.

Other demands are on the sector itself - for example, moving towards the mandatory installation of green or photo-voltaic roofs on large residential blocks. 

The BPF, which has released a report in association with property consultancy JLL, says access to data is a major challenge. The federation wants it to be compulsory for energy consumption data across the industry to be shared. 

It says that policy and regulatory uncertainty and a lack of financial incentives to support the retrofitting of buildings are hindering progress. “Transitioning to net zero comes at considerable cost, and without robust evidence of a return on investment, many property owners lack the confidence to invest in major energy efficiency upgrades” it adds.

The report reveals that nine in 10 senior industry figures surveyed by the BPF and JLL do not believe current government policy will deliver a net zero property sector by 2050.

To ensure the property sector can meet net zero targets the BPF has set out several essential policies. These include:

1. Mandate the sharing of energy consumption data between property owners and occupiers of large commercial buildings, and set up a Task Force to explore the particular data challenges faced by owners of residential buildings

2. Confirm urgently the detail of the planned changes to the MEES regulations for both the domestic and non-domestic private rented sectors, and the details of the proposed new performance-based energy rating system

3. Zero rate VAT on residential repairs and maintenance and reform capital allowances to incentivise investment to decarbonise

4. Move towards the mandatory installation of PV and/or green roofs on large residential, commercial and public buildings

5. Strengthen the criteria for a green tariff label

6. Allow Real Estate Investment Trusts (REITs) to invest in off-site renewables

7. Align, and resource, the planning system to enable the net zero transition

8. Mandate the use and disclosure of Life Cycle Assessments, and set embodied carbon reduction targets

Melanie Leech, the BPF chief executive, comments: “The property sector is fully committed to decarbonisation but there are huge barriers and costs to overcome. We need clear long-term policies, regulation and incentives to support the industry’s efforts. We urge the government to adopt the policy recommendations in this report and to work with us to make sure we can deliver a net zero built environment by 2050.”

Guy Grainger, the president of the BPF and global head of sustainability services at JLL, adds: “There is no denying that the real estate industry is committed to net zero, with pledges being made at a global, national and local level, but these pledges need to be turned into credible action. 

"Without clear incentives and regulation from government we will continue to fall short of targets. The report highlights the insight we can garner when we collaborate and this collaboration, along with Government support is critical.”