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Climate change is one of the most significant challenges of our time. The existing housing stock is a crucial component in achieving international and national climate change targets through energy efficiency improvements. The private rental sector incorporates some of the worst performing housing. To address this, the UK has implemented the minimum energy efficiency standard, based on the energy performance certificate rating. However, the energy performance certificate has a number of criticisms in the UK and across the EU. This viewpoints paper discusses the primary criticisms of the EPC and whether these undermine the minimum energy efficiency standard.

This viewpoint paper draws on the recent work across academic, government and professional literature to develop a critique of the energy performance certificate and its underlying methodology as a basis on which to form the minimum energy efficiency standard.

The paper concludes that based on the current form of the energy performance certificate in the UK, the minimum energy efficiency standard is likely to unfairly advantage some landlords and penalise others. This has implications for landlords, tenants and the wider housing stock.

This paper presents a discussion of the new minimum energy efficiency standard based on the limitations of the energy performance certificate. It has implications for policymakers, researchers and practitioners in the private rental sector.

About 27 per cent of the total UK carbon emissions are attributed to residential buildings; therefore, improvements to the energy efficiency of the stock offers great potential. There are three main ways to achieve this. First is a mandatory approach, minimum energy efficiency standards are set and applied to new and existing buildings. Option 2 is voluntary, using energy ratings that classify performance to stimulate awareness and action. Third, financial measures, incentives and taxes, are applied to “nudge” behaviours. Most westernised countries have adopted a combination of Options 2 and 3, with the belief that the market will incentivize efficient properties. The belief is voluntary measures will stimulate demand, leading to value premiums. This paper aims to seek a deeper understanding of the relationship between energy efficiency and the value of residential property in Europe and, by so doing, to determine whether stronger policies are required to realise decarbonisation.

This paper reviews the current academic literature and large-scale quantitative studies conducted in Europe, mostly using hedonic pricing analysis to seek a relationship between energy performance certificates (EPCs) and either capital or rental values. It compares these to the reported findings of three case study projects that take a variety of different research approaches, all of which have the ambition to understand market behaviours and stimulate occupier or/and owner demand for energy efficient buildings.

The large-scale academic study results generally show a positive relationship between observed market prices and EPCs, which are commonly taken as surrogates for efficiency; however, outcomes are variable. One large study found energy upgrades may increase value, but not to the point where costs outweigh the value gain. Other studies found high returns on investment in energy efficiency technologies. The case study projects, however, revealed a more nuanced set of arguments in terms of the relationship between energy efficiency and market behaviours. Whilst there is some evidence that energy efficiency is beginning to impact on value, it is small compared to other value drivers; other drivers, including health, well-being and private sector finance deals, may prove more powerful market drivers. Further, the empirical findings reported point towards the emergence of a “brown” discount being more likely to be the long-term trend than a green premium. It is concluded that the current levels of action are unlikely to deliver the levels of decarbonisation urgently needed.

This is a desktop study of other European studies that may have collected data on slightly different variables.

This study shows that more action is required to realise decarbonisation in new and existing residential property in the European states considered. The sector offers potential for substantial reductions, and other mandatory approaches need to be considered.

This is a timely review of the current outcomes of European programmes (EPCs) adopted in several countries to increase energy efficiency in the residential sector through a voluntary mechanism. The results show that more action is needed.

The paper investigates the initial impacts on asset management and valuation practice of the Minimum Energy Efficiency Standard (MEES) introduced in England and Wales from April 2018 for new lettings.

The paper reports findings from a small-scale pilot study of valuers, asset managers, lawyers and building consultants. Interviews were conducted over the summer of 2019 and explored the impact on practice and market values and perceived links to the carbon reduction agenda. Data were analysed thematically manually and using NVivo software.

Participants welcomed MEES but many had doubts about the use of energy performance certificates (EPCs) as the appropriate baseline measure. Compliance was perceived as too easy; further, enforcement is not occurring. Vanguard investors have aligned portfolios for carbon reduction; others have not. Lease practices are changing with landlords seeking greater control over tenant behaviours. Valuers reported that whilst MEES consideration is embedded in due diligence processes, there is limited value impact.

The study is limited by its small-scale and that the MEES regulations are not yet fully implemented. However, the research provides early findings and lays out recommendations for future research by identifying areas in which the regulations are/are not proving effective to date.

The findings will inform investors, consultants and policy makers.

Achieving energy efficiency in buildings is critical to driving down carbon emission; it also has economic and social benefits through cost savings and reducing fuel poverty.

Believed to be the first post-implementation qualitative study of MEES.

The purpose of this paper is to provide an update on how the 2018 energy efficiency legislation in the UK, Minimum Energy Efficiency Standards (MEES), is impacting upon the UK market with a particular emphasis on the investment market.

This practice briefing is an overview of the 2018 legislation and comments on how market awareness has changed since its introduction and the potential impact upon prices of affected properties moving forward.

This paper discusses how capital and rental values are beginning to be discounted in the market to allow for current and future liabilities under the MEES legislation. This has a significant impact on strategies for property investment.

The role of the property professional is to ensure that clients are fully conversant with their statutory obligations and to advise on appropriate investment strategies to optimise their property portfolios.

This paper provides insights on the requirements of MEES legislation to aid the property professional.

Using a unique data set, the purpose of this paper is to test the hypothesis that tenants pay increased accommodation costs for space in energy efficient office property.

The authors obtain lease contracts for office space in central Sydney, Australia. Empirical data on annual gross face rent and contract terms from each lease are combined with building characteristics and measured energy performance at the time of lease. Hedonic regression isolates the effect of energy performance on gross face rent.

No significant price differentials emerged as a function of energy performance, leading to a conclusion that tenants are not willing to pay for energy efficiency. Six factors – tenancy floor level, submarket location, proximity to transit, market fixed effects, building quality specification and, surprisingly, outgoings liability – consistently explain over 85 per cent of gross face rent prices in Sydney.

Rent premiums from an asset owner's perspective could emerge as a result of occupancy premiums, market timing or agent bias combined with statistically insignificant rental price differentials.

Tenants are likely indifferent to energy costs because the paper demonstrates that energy efficiency lacks financial salience and legal obligation in Sydney. This means that split incentives between owner and tenant are not a substantial barrier to energy efficiency investment in this market.

This study is the first to thoroughly examine energy efficiency rent price premiums at the tenancy scale in response to disclosure of measured performance. It also presents evidence against the common assumption that rent premiums at the asset scale reflect tenant willingness to pay for energy efficiency.

The purpose of this paper is to provide an insight into how the new energy efficiency legislation in the UK is impacting upon the valuation of certain properties. This paper looks at how to adapt implicit valuation models to reflect the new risks of the impact of legislation.

This practice briefing is an overview of the new legislation and comments on the appropriateness of valuation models in different scenarios.

This paper analyses the likelihood of capital and rental value changes under the new energy efficiency guidelines.

The role of the valuer in practice is to identify the impact of the new legislation on the value of the subject property and choose the correct model for the valuation task in hand.

This provides guidance on how valuations can be undertaken to reflect any impact of the new energy efficiency legislation.

The Government of UK is committed to reducing Green House Gas emissions by 80 per cent based on the 1990 levels, by 2050. In order to achieve this reduction, the UK Government, along with their European counterparts, have implemented various directives and incentives, which progressively and incrementally are intended to move them towards this target. One such directive is the European Energy Performance of Buildings Directive, which sets the policy for achievement. The paper aims to discuss these issues.

This paper seeks to examine the complexities of these changes when considered against the real world use and operation of buildings, most particularly at lease end. It explores the inter-relationship of landlord and tenant at lease expiry and renewal.

It argues that the Energy Act regulations might have significant impact on the actions of landlords and tenants; both in advance of and shortly after the lease is determined.

One of the key mechanisms contained within this directive for the reduction in emissions is the Energy Performance Certificate (EPC). An EPC must be produced where a building is being constructed, rented or sold. EPCs rate buildings on their asset energy performance and in conjunction with building regulations are becoming increasingly more stringent to achieve targets. Regulations under the Energy Act 2011, due to take effect from April 2018, will mean that it will be unlawful to let or re-let a building which fails to reach minimum energy performances standards, currently defined as an E rating; further it is intended that the regulations will extend to all lettings from 2023.

This paper looks at the inter-relationship of landlord and tenant at lease expiry and renewal with the proposed directives on EPCs.

The UK government, in late 2019, announced new proposed targets for the energy efficiency legislation in the UK, MEES – Minimum Energy Efficiency Standards. The current suggestion is that all let properties, commercial or residential, need to be B rated by 2030. If this is implemented, it will have a significant impact upon the UK market property investment market.

This practice briefing is an overview of the 2018 legislation and comments on how market awareness has changed since its introduction and the potential impact upon prices of affected properties moving forward

This paper discusses how capital and rental values are beginning to be discounted in the market to allow for current and future liabilities under the MEES legislation. This has a significant impact on strategies for property investment.

This paper analyses the likelihood of (negative) capital and rental value changes under the proposed stricter energy efficiency guidelines.

This provides guidance on how valuations can be undertaken to reflect any impact of the likely changes to UK energy efficiency legislation.

The aim of this paper is to investigate the major differences between the government's role in building energy efficiency (BEE) in China and three developed countries, and to further the understanding of market expectations of the most effective government measures to encourage BEE development in China.

The approach taken was: establish a framework for a critical comparative study; compare and assess the BEE promotion measures available to governments in the USA, Canada, the UK and China; survey the BEE market expectations of building design professionals to better understand the favourable measures the Chinese Government could take to further promote BEE; and triangulate the findings of the comparative study and questionnaire survey to develop recommendations for BEE promotion in mainland China.

Economic incentives are important for BEE promotion at the current stage, but they are lacking in China. Active government interventions, such as adjusting energy pricing and implementing BEE legislation, are needed in China if BEE is to become economically viable and efficient.

Owing to limited resources, the questionnaire survey did not reach every part of China. A further study should be carried out to extend the investigation to more areas of China and to obtain wider stakeholder coverage.

The originality of this paper lies in its development of a theoretical framework to further understanding of the government's role in BEE promotion and its use of first‐hand data collected from industry to verify market expectations of that role in China.

The aim of this research is to examine if building information modelling (BIM) is feasible as an information management platform to determine a financially and environmentally affordable housing refurbishment solution based on the life cycle cost (LCC) and LCC calculation.

A case study in conjunction with BIM simulation approach using BIM tools (Autodesk Revit and IES VE/IMPACT) was adopted to identify the feasibility of BIM for the simultaneous formulation of LCC and life cycle assessment in housing refurbishment.

This research reveals that BIM is a suitable for the information management platform to enable construction professionals to consider trade-off relationship between LCC and life cycle assessment simultaneously, and determine the most financially and environmentally affordable refurbishment solution. The interoperability issues in data exchange among different BIM tools and unstandardized BIM object libraries with incomplete data sets of construction materials are recognised as the major shortcomings in a BIM system. Essential remedial actions to overcome the shortcomings in the current BIM tools are identified.

Actual housing information and various refurbishment materials for the BIM simulation are limited.

This research contributes to supporting construction professionals to prepare practical BIM adoption for the integration of the LCC and life cycle assessment that can significantly improve early decision-makings on sustainable housing refurbishment.

This research will contribute to providing proper remedial actions to overcome the shortcomings in the current BIM tools, and insights for construction professionals to understand the implication of BIM-embedded housing refurbishment.