{"id":6031632,"date":"2020-05-26T10:04:35","date_gmt":"2020-05-26T09:04:35","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=6031632"},"modified":"2020-05-26T10:04:35","modified_gmt":"2020-05-26T09:04:35","slug":"what-the-new-rics-climate-change-report-means-for-property-investment","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/zh-hk\/2020\/05\/26\/what-the-new-rics-climate-change-report-means-for-property-investment\/","title":{"rendered":"What the new RICS climate change report means for property investment"},"content":{"rendered":"

Climate change is still one of the most poignant topics concerning people across the world today. The current coronavirus pandemic could offer an opportunity for change in the UK housing market.<\/strong><\/p>\n

While some government policy may have been placed on the back-burner thanks to the current situation, environmental issues are still a much-discussed topic. Arguably, they have come to the fore in some circles even more in recent weeks. Pollution levels have dropped significantly<\/a>, while most people are using their homes<\/a> in a very different way to how they were before March.<\/p>\n

In light of the ongoing situation, as well as the government’s goal for the UK to reach net-zero carbon emissions by 2050, the Royal Institute for Chartered Surveyors (RICS) has released a new policy proposition paper for the government. The publication, titled ‘Retrofitting to decarbonise UK existing housing stock<\/a>‘, addresses a wide range of issues affecting the property market. It also proposes a number of solutions to help the UK achieve its carbon neutral goals.<\/p>\n

Investing in newer property<\/h4>\n

The UK’s built environment, including the construction<\/a> industry, is responsible for around 39% of UK carbon emissions<\/a>. This compares to 23% for transport (GlobalABC).<\/p>\n

According to RICS, around 15% of total UK emissions currently come from heating homes. However, less than 5% of the energy used for heating homes and buildings derives from low-carbon sources. This, therefore, is one of the key areas for change highlighted by RICS.<\/p>\n

New-builds<\/a> are one of the most energy-efficient property types to invest in. They tend to have the highest EPC ratings, higher build quality to meet current NHBC standards<\/a>, as well as more modern fixtures and fittings. The government wants all UK properties to have minimum EPC ratings of C by 2035, so investing in a new-build should ensure that this standard is easily met.<\/p>\n

However, less than 1-2% of total annual building stock is new-build, says the report. This means that the main focus should be on retro-fitting existing properties.<\/p>\n

Focus on green housing after coronavirus<\/h4>\n

RICS believes that pushing ahead with carbon-focused proposals will aid the country’s recovery from COVID-19<\/a>. Since the UK went into lockdown<\/a> in March, people have been spending more time at home than ever. Therefore, placing a stronger focus on green housing solutions now could provide huge potential benefits.<\/p>\n

Dr Patrice Cairns, RICS policy manager, commented: \u201cRetrofitting provides the UK with an opportunity to achieve both operational carbon and significant embodied carbon savings through re-use rather than re-build. Government ambitions are clear, but the policy route is uncertain.<\/p>\n

\u201cAs the UK prepares to spend more time at home, for our work as well as leisure, the benefits of green home improvements will continue to gather momentum. Government must use this unique opportunity to review their existing policies, working with the expertise of industry, and implement a holistic approach to retrofitting.\u201d<\/p><\/blockquote>\n

The recommendations from RICS include:<\/p>\n