Select Committee on Environmental Audit Written Evidence


Memorandum submitted by The Royal Institution of Chartered Surveyors (RICS)

  RICS believes that the move to sustainable homes with a lower carbon footprint must:

    —  be outcomes focused;

    —  not be too prescriptive so that innovation is stifled;

    —  allow for improvements in building regulations, the building of district combined heating/cooling systems and undertaking of quality research and development;

    —  assess the changes in production methods, materials and skills required to produce low carbon homes;

    —  be evidence based; and

    —  enable best practice to be developed.

  To help meet supply issues and drive these changes government must:

    —  introduce some interim milestones to assist track progress;

    —  help overcome the cost barriers that will be incurred to meet targets;

    —  produce a clear definition of zero carbon;

    —  include the use of renewable energy within any definition;

    —  inform the home buying public about the lifestyle changes coming with sustainable zero carbon homes; and

    —  develop a national infrastructure strategy.

WHO IS THE RICS?

  By way of background, RICS is the largest organisation for professionals in property, land, construction and related environmental issues worldwide. We promote best practice, regulation and consumer protection to business and the public. With 140,000 members, RICS is the leading source of property related knowledge, providing independent, impartial advice to governments and global institutions.

  RICS is uniquely well placed to offer its perspective as the leading property professional body, required by its Royal Charter to place the public interest at the core of all its activities and ahead of its members' own interests.

1.  REDUCING CARBON EMISSIONS FROM NEW HOMES

1.1  Is the target for all new homes to be zero-carbon by 2016 on track to be achieved? Does the Government need to do any more to deliver this target?

  No, there is a great deal more work required by both Government and the industry before there is a clear understanding of what the target actually means and whether we are on track to achieve it. There is a clear need for Government and industry to develop key interim milestones to assist meeting future targets.

  A decision needs to taken by Government to include off-site and near site renewables that can be included in the definition. At a more hands-on level, there is a fundamental lack of established definitions in this area which significantly inhibits progress. The property industry is uncertain as to what is required of it. Consequently, industry is finding it difficult to prepare itself by acquiring the necessary skills, knowledge and technologies to ensure it can achieve the set targets and consequently pledge that standards are maintained throughout the life cycle of a building. There is a significant lead time to develop such new skills and processes and so these matters must be addressed as soon as possible.

  Work is just starting on the revision of the Building Regulation Guidance Approved Document L regarding the next reduction in CO2 and there will be two further revisions before the 2016 target is reached. A considerable number of changes will be needed to meet the standards of these interim revisions. For example, observations of European low energy building types such as the "Passiv Haus" show that in order to achieve very low to zero carbon standards much of the construction process needs to be carried out off-site. The required quality standards cannot be achieved using the current on site methods commonly used in the UK. Specialist skills and understanding of the specific system being used as well as very close supervision during the the on site assembly and construction process if the design integrity is to be preserved.

  Addressing consumer behaviour and demand is also yet to be tackled. Current best practice shows a different mindset for the average homeowner is required. In order to achieve maximum energy efficiency in their homes a Passiv Haus takes a long time to warm up, but once the required temperature is reached only low amounts of energy are required to maintain it; opening the windows has little effect so ventilation is fairly simple. For lightweight construction types the opposite is true.

  The cost of achieving zero carbon is a barrier as these significantly increase on approaching net zero carbon emissions.

  Cost implications also need to be considered for developments of various sizes, particularly as the smaller the development the greater costs.

  Further concerns arise from how the target will be achieved for the more complex small scale developments where regulatory cost may be greatest.

  The Government should consider the cost benefit analysis of building to code level 6 versus building to a lower level such as 4/5 and investing the difference in a significant programme tackling carbon reduction in existing stock. This would result in greater carbon reductions for the same amount of money.

RICS RECOMMENDATIONS

  A clear definition of zero carbon homes is needed as a top priority. A common agreed strategy between Government and industry to ensure continued cost efficient progress towards meeting interim and ultimate targets is essential.

  Government should agree pragmatic interim targets with all levels of the housebuilding industry towards achievement of the zero-carbon target. It should also seek to develop a shared understanding across the private and public sector of the different challenges that will need to be addressed to meet each of those interim targets.

  Government and industry need to more accurately assess the changes in production methods, materials and skills required to produce low carbon homes. Significant upfront investment, well ahead of 2016 is required if we are to come close to achieving the target.

  Government needs to consider relevant costs to ensure the most cost effective carbon reductions programme is implemented. The Government must find practical solutions to overcoming expected cost barriers particularly with regard to the current state of the property market.

  The Government also needs to inform the home buying public about the lifestyle changes coming if zero carbon homes are to work effectively. A clear campaign—based on accurate evidenced based practices will be required to help educate the public about sustainable behaviour and new technologies. It should be clarified that zero|

  Government must provide incentives, including tax breaks, to help meet the targets and to facilitate increased research and development in sustainable development. It is essential that best practice is evidence based.

1.2  How should "zero-carbon" be defined? What role should carbon offsets play in meeting this target?

  RICS believes that it is essential that the definition of zero carbon should outcomes focused and not be prescriptive in order to facilitate and encourage industry to innovate in this area.

  New technologies and sustainable practices are needed and are expected to change rapidly over the coming years. Solutions to the challenges ahead must be encouraged through an appropriate definition.

  RICS believes that the current Treasury Definition is not satisfactory and the following must be considered as part of the development of the definition:

    —  Focus on the building itself being zero-carbon.

    —  Exclusion of white goods.

    —  Consideration of energy supply to the home.

    —  Inclusion of near site and off site renewals.

    —  Evidence based decision on the appropriate form, scale and location of the renewables.

    —  Consideration of how different development types may achieve zero carbon such as individual bespoke homes versus mass produced kit homes vs In-fill vs Greenfield vs inner city developments.

    —  Credibility/safeguarding of carbon offsetting.

1.3  What impact will the progressive tightening of energy efficiency building regulations have up to 2016? Are the targets for 2010 and 2013 achievable?

  The impact will be higher building costs which will then be passed on to the consumer. The current climate of "credit crunch" means there is even lower incentive for developers to invest in low carbon technology. Maintaining the current business will be their priority for the next few years.

  The targets for 2010 and 2013 might be achievable but at high cost. Not every technology is suitable for every site. The cheapest technologies may not be possible ie. in inner city sites like much of London. There is insufficient wind speeds for wind turbines, and bio-mass fuel should not be used because of transport and smoke problems. This leaves photovoltaics, solar heating and ground and air source heat pumps, all of which are currently very expensive with long payback periods and don't generate huge amounts of renewable energy, so there would still need to be back up systems, eg for when it is cloudy. Heat pumps take up a lot of room comparatively and with the high pressure on land use, installing a ground source heat pump may not be economically feasible.

  RICS says a three pronged approach is needed:

    —  improvements in building regulations,

    —  increasing building of district combined heating/cooling systems and

    —  the encouragement of research and development for low carbon homes.

1.4  How should compliance with the targets be measured and enforced?

  It is impossible for Building Control to act as site supervisors and check every detail of construction. There is already significant pressure upon the building control resources within local government. The RICS believes the Future for Building Control consultation currently being undertaken by Government represents the right approach to the development of this function. Furthermore with production line methods of off-site construction becoming more important new mechanisms of assurance will be required.

  There needs to be a level of independence either in the person or the accreditation of the person who is ensuring compliance. This can be achieved via some sort of government approved scheme similar to energy assessors. Enforcement can then be carried out through trading standards.

  RICS suggests an "appointed person" who visits the site regularly and signs off the construction in the same way a health and safety supervisor signs off compliance with the CDM regulations.

1.5  What is the likely scale of environmental impacts (especially carbon emissions) of the construction of three million new homes (ie, irrespective of where they are sited)? How should these impacts be reported? What should be the role of central Government in minimising them?

  Three million new homes means three million homes worth of embodied energy (ie the carbon produced in materials manufacturing and the construction process). The Environment Agency has a crude CO2 embodied energy calculator but there is a need for a better estimation of the amount of carbon involved.

  The wider concern with large scale developments is the lack of sufficient infrastructure to go with this level of development eg reservoirs for the South East of England and transport infrastructure.

  RICS strongly support Sustainable Construction Strategy developed by the BERR, with other departments and the industry as an example of the right partnership approach to reducing emissions from construction. RICS believes that a national infrastructure strategy is needed to ensure that it is delivered by Government Department and agencies and a high level coordination unit should be established in the Cabinet Office.

2.  ECO-TOWNS

As currently envisaged, how big a contribution will they make to reducing the environmental impacts of housing in England-both in their own right, and in the development of design and techniques that could be rolled out in other developments?

  The development of eco-towns will have very little direct impact on reducing total carbon emissions from buildings and will almost certainly have some negative environmental impact. In terms of total numbers, eco-towns will only provide 100,000 homes of the three million the Government wants built by 2020.

  The main concern of RICS is that eco-towns will be isolated and not effectively linked to other communities. This is a result of the requirement that they are separate from existing towns and cities. There is also a real risk that eco-towns could become isolated dormitory settlements supplying workers to existing towns, rather than people living and working in the same town. As a result there are likely to be high levels of private car use associated with eco-towns as people will still want easy access to work, shops and services in nearby towns.

  Instead of creating brand new eco-towns the Government should be encouraging development on sites adjoining existing settlements to create eco-extensions. These new areas could be more effectively integrated into existing public transport networks and would be better linked to jobs and services. There would also be a benefit to people living in existing towns who could benefit from the additional services provided in the eco-extension.

  It is not sustainable to have a town made up of green buildings if economic and social issues are ignored and there is an increase in private car use. Moving people away from existing towns and cities into isolated communities seems to be completely at odds with wider development of sustainable communities.

3.  CODE FOR SUSTAINABLE HOMES

What impact is the Code for Sustainable Homes likely to have on the construction and purchase of new homes? How well is the mandatory rating likely to be enforced? Should the Code be changed in any way?

  The Government admits that the mandatory rating under the Code for Sustainable Homes will only have a minimal impact on carbon emissions from new build private homes for sale. The Impact Assessment published alongside the Housing and Regeneration Bill suggests that:

    "The baseline rate of assessments has been assumed to follow current assessment rates under EcoHomes:

    Public sector—24,000/yr; and

    Private sector—3,000/yr (equivalent to 2% of private new build).[41] "

  Whilst the Code is valuable as a market based tool to help inform consumers, this will only have a minor impact on new build and an even smaller impact on the total building stock. If we are to see a significant increase in environmental standards for new privately built homes, there will need to be a concerted effort from house builders to take up assessment and build to high environmental standards. However, the lack of demand from buyers for these high environmental standards suggests that progress towards interim targets towards zero carbon homes will be the only way to guarantee reduced carbon emissions from new homes.

  The Government has argued that the Code will help boost innovation in the construction industry and lead the market towards producing zero carbon homes. This is unlikely to occur across the board, particularly as housebuilding levels will fall due to cost constraints in a declining market. This must be taken into account with any requirements on new housebuilding as increased costs will have more of an impact on levels of development in the current market compared to more favourable economic conditions.

  Ensuring funding for improvements to existing homes will avoid this problem and will have a greater impact on total levels of carbon emissions.

4.  GREENFIELD AND GREEN BELT DEVELOPMENTS

To what extent do, and should, planning controls protect greenfield and green belt land from development of new housing? How adequately are environmental considerations (for instance, biodiversity and rural landscapes) being taken into account in deciding the location of new developments?

  Government must take a clear lead on the relative impact of protecting the green belt versus freeing up land for housing development. Green belt land is often around areas of high housing demand and development in these areas would have a serious impact on increasing levels of affordability and accessibility. These sites also tend to have lower costs associated with them than brownfield sites and could help reduce development costs in a declining market and ensure supply levels are maintained. More land than at present will need to be brought into development in order to achieve Government targets for housebuilding and affordability.

  However, we must not simply allow urban sprawl over green belt land. In particular there must be high density housing built to high energy efficiency standards with effective non-car transport links. One way to ensure this type of development takes place would be by using eco-town standards to, instead, create eco-extensions to existing well serviced centres.

5.  INFRASTRUCTURE

What progress has the Government made, in the two years since EAC's last report on this issue, in ensuring that new developments are being built with adequate infrastructure in order to make them successful and sustainable?

  The answers to the above questions have demonstrated the critical need for investment in infrastructure for low-carbon and renewable energy for both near site and off-site locations. These will have an essential role to play in the achievement of zero carbon homes for 2016 or beyond.

  RICS is yet to see an appropriate appreciation across the other relevant parts of Government of what this will mean for UK energy and renewables policy. For example, the public may sensibly believe that the reductions from having zero carbon homes are additional to reductions from achieving the latest UK renewables target. This would mean that BERR should actually increase its target for the provision of renewable energy (or other low carbon energy provision) beyond that required by currently published UK commitments to the EU. Furthermore, simple mechanisms for house builders to secure truly additional near-site and offsite renewables off other providers will be required. Subsequent occupiers of these new homes will also have to be locked-in to using these renewable resources.

  In tandem with the definition of zero carbon homes, Government should produce a clear strategy for what additional renewable/low carbon energy infrastructure will be required to achieve zero carbon homes. Such a strategy should also make clear who within Government and industry will be responsible.

  RICS want to work with government to help tackle some of the pressing environment issues that we are currently facing. We would welcome the opportunity to give oral evidence in order to expand upon the points raised above. Please contact Daniel Cook, Public Affairs Manager (email; dcook@rics.org, phone 0207 695 1754) if you require us to give evidence.

25 April 2008








41   P74, Housing and Regeneration Bill-Impact Assessment http://www.communities.gov.uk/documents/housing/pdf/HousingandRegBill Back


 
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