2023 INDUSTRY PREDICTIONS: A YEAR OF CONTINUED CHANGE

The government has recently introduced new energy efficiency requirements for commercial leases which landlords, developers and investors will need to prepare for. By April 2023, all commercial rental properties must have a minimum E-rating and all residential properties must have a minimum C-rating.

However, these changes have not been well-publicised which creates a point of contention given that many buildings do not meet these standards. There is a strong possibility that many landlords that will be left in a position of suddenly having commercial rental and residential rental properties that they cannot rent because they do not meet the new energy efficient standards. Therefore, the industry must support clients with the transition to meeting these standards where possible.

The industry must adapt

The industry must adapt to meet these regulations, which coincides with many people already thinking about how they can reduce their energy consumption due to the rising cost of energy. Unfortunately, many people will view changing the primary heat source of their property as the solution to improved energy efficiency. It’s likely that people are going to make the common mistake of using heat pumps in buildings, but while heat pumps are energy efficient, they are also cost-intensive.

Unfortunately, many people will possibly realise this too late. This is not helped by the fact that much of the current public messaging is encouraging homeowners to turn down their heating. While this seems like a simple solution, there are actually far more effective measures that will produce desirable results. The mantra in the energy engineering field is ‘fabric first’. Truthfully, we should be educating people on the importance of improving the fabric of existing homes, before applying costly technologies, such as heat pumps, to the existing building stock.

For example, open fires and draught exclusion are far more effective measures than turning central heating down by one degree. Therefore, I would recommend assessing the fabric of buildings before implementing technologies which produce less greenhouse gases, but come at a high cost. Improving the fabric of a building is more cost effective and eliminates the problem at the source.

The solution: a consumer-led change

One change I expect to see implemented is a high standard of energy efficiency being driven by the market. This conversation is particularly relevant, given that everybody is experiencing the rise in energy bills. We have already seen consumer-led movements occur in the construction industry with the changes to the Building Regulations regarding car chargers for Electric Vehicles (EV), for example. I predict that much like the consumer’s desire for sustainable transport leading to a change in construction, I believe that the energy efficiency of developments will start to become more important across the sector.

With appliances, many people will exclusively purchase A-rated appliances because they understand that it will save them money. I think as an industry, we need to be more responsive to consumers demanding better energy efficiency, rather than energy ratings being something that is calculated at handover because the rules state it.

Likewise, the energy efficiency of a property is a characteristic that developers should be proud of. Typically, when browsing a major housebuilder’s website, the energy efficiency rating is rarely displayed. People are being affected by rising costs, and an A-rated house would cost them far less than an E-rated house would. It seems ironic that it is commonplace to display energy ratings on the front of fridge-freezers when an appliance is just one component of a home. The energy efficiency of the home itself is potentially going to result in great expenses for the buyer, so shouldn’t the industry care more about making the energy rating of properties and their commercial ratings statements known?

Changes to the Building Regulations will continue to affect us as we go into 2023, with additional changes being introduced to rental homes. While any changes to make homes more sustainable are commendable, the government’s changes in 2023 only affect rental properties, so more changes will have to be made if we want to make our existing stock more energy efficient. Central to this change, will be a rethink in the approach to heating homes. Considering a fabric first practice and making energy ratings accessible to the consumer would be an excellent start to improving energy efficiency.