Select Committee on Environmental Audit Minutes of Evidence


Memorandum submitted by English Partnerships

1.  WHAT IS THE ROLE OF ENGLISH PARTNERSHIPS (EP)?

  English Partnerships (EP) is the national regeneration agency, sponsored by the Department of Communities and Local Government (CLG), with an overarching aim of "supporting high quality sustainable development in England, delivered through five core business areas:

    —  Developing our own portfolio of strategic sites.

    —  Acting as the Government's specialist advisor on brownfield land.

    —  Making sure that surplus Government land is used to support wider Government objectives.

    —  Helping to create communities where people can afford to live and people want to live (supporting the urban renaissance by improving the quality of our towns and cities).

  Although EP is measured in terms of outputs including housing units supported or developed on our sites, we also play a role in demonstrating or piloting quality and sustainability standards on behalf of the Government. Our quality standards have helped pave the way for several reforms of building regulations and the content of the Code for Sustainable Homes (CSH).

  We have been tasked by CLG to test the early implementation of the Code for Sustainable Homes, such that homes briefed from April 2007 onwards are at Code Level 3, rising to Code Level 6 by 2013, some three years in advance of the mandatory target.

  We are commissioning the construction of larger scale zero carbon (Code Level 6) developments to help the house building industry and its suppliers gear up to the Government's 2016 zero carbon homes target. We have already run a competitive process for the first site in Bristol, at Hanham Hall for 168 homes, which is being developed by Barratt Homes as its premier exemplar housing project in the UK. We have a further three sites where developers are currently bidding in Wigan, Doncaster and Peterborough. The largest site is at Wigan on a former colliery site with the potential to deliver 650 zero carbon homes in a mixed use low carbon development.

  English Partnerships is primarily land focused. We seek to use our own land holdings for the widest possible regeneration benefit. We seek to act as a catalyst for development—we get involved at an early stage to prepare sites for development, ie land acquisition, site assembly, land remediation, masterplanning.

  We bring considerable funding at early stages of projects to prepare difficult sites for the market. We have the scale and resources to support this work.

  We have widespread experience and expertise in these areas and we seek to take the long view.

  We are also able to be a source of practical best practice we can develop and test out the highest standards of design, construction and environmental sustainability firstly through our demonstration projects and further throughout our programme.

2.  REDUCING CARBON EMISSIONS FROM NEW HOMES

  EP pioneered the creation of sustainable communities with the Millennium Communities (MC) programmes. These programmes were initiated in 1997 and created sustainable places to live—not just innovative environmental homes. These homes were briefed to the BREEAM Ecohomes specification which is not comparable with the CSH. To date, 1,200 Ecohomes "Excellent" have been built on our sites or supported projects and 1,000 more are under construction. In total we expect to deliver 9,000 Ecohomes with planning permission by 2014.

  We have recently received a report on the forecast for the carbon impact of the MC programme homes, and benchmarked the performance against the Building Regulations that were in force at the time (2002) and against current 2006 regulations.

  Each developer has adopted different strategies to reach the improved energy standards, however, we have learnt common lessons which are proving themselves invaluable in accelerating delivery of the CSH. The environmental standards are incorporated as part of a commercial scheme in which the developer makes a profit without subsidy from EP.

  On average a home built to MC Standards uses 23% less energy than a home built to 2002 Building Regulation standards and impressively 11% less energy than the more stringent 2006 Building Regulation standards.

  The report predicts that "by 2032 each MC home will have saved around 145,000 tonnes CO2 compared to a home built to 2002 Building Regulations". (A tonne of CO2 would fill a balloon measuring 10m diameter.)

  By initiating and persisting with high environmental standards, EP has proven to the construction industry and its stakeholders that it is possible to accelerate the take up of higher standards and build confidence in the use of new methods and technologies.

  We hope that the Government does maintain the ambitious timeline to zero carbon—any sign of flinching will undermine the many co-ordinated efforts which are now evolving.

3.  DELIVERABILITY OF THE CODE FOR SUSTAINABLE HOMES

  EP has been briefing developers to build at Code Level 3 since April 2007 and our developer partners appear to have made the transition smoothly.

  We have evidence of developers meeting Code 3 with and without incorporating micro generation. This has mainly been achieved through improved construction procurement, modern system building, supply chain engineering, use of architects and QS advisors as well as through tighter supervision of construction staff to achieve homes with a better standard of airtightness.

  Currently we have four schemes which are voluntarily proceeding at Code Level 4. EP has an internal project monitoring database with predictions for future programme delivery. For the three years 2010-12 we are predicting 93,000 housing starts commissioned on site.

  What is going to require a significant shift in approach, attitude and technical application is that once you start building at Code Level 5 & 6 then the development is much more about the energy infrastructure than the housing. Under the present definition future projects will require private wire connection to on-site energy solutions in the majority of cases.

  With this longer term energy infrastructure requirement EP has commissioned research on how best to maximise land value and support the upfront and integrated provision of energy solutions to encourage the take up of our sites. This includes scenarios with energy and other utilities such as waste, water and digital technologies.

  There are significant opportunities to derive energy from waste solutions here, and for Ecotowns, which need to be grasped—if this agenda is to move forward house builders need to liaise with waste management companies.

  EP's Carbon Challenge retains the ambition of up to ten large-scale pilot schemes. Given the cooling market and a weakening appetite for house building generally, we are focusing on getting developments under way on four initial sites for the time being.

  One difficulty the house builders have is meeting the costs of achieving Code Level 6 plus affordable homes plus EP quality standards plus Lifetime homes on the same development, which can leave zero profit margin and possibly negative land values.

  EP is also scoping research with BRE and NHBC Foundation to explore with major house builders and Housing Associations the real costs of delivering at high Code Levels. Early work done in this emerging area has not taken account of the real reductions of delivering at scale, given that no developments have yet been built at zero carbon and it is only English Partnerships Carbon Challenge Initiative which is currently gathering competitive bids.

4.  IS THE HOME BUYING AND RENTING PUBLIC READY?

  The NHBC Foundation recently produced a report which asked the public their views on what they expect living in a zero carbon home will be like. The questions led to skewed answers. For example, people were asked if they would like it if they were unable to open a window in an "airtight" home or if they would accept low flow and small baths—neither of which are necessarily downside features for zero carbon living.

  Within EP we have commissioned research, due in September, which explores residents living experiences in our three most advanced Millennium Communities. Initial responses show that people do enjoy and value the sense of place and the lower running costs.

  We want to find out if people choose to live in eco-friendly homes in communities for longer periods, and whether they are prepared to pay more money to buy in to this lifestyle. We are also researching sale values benchmarked against comparable "ordinary" homes.

  In times of a buoyant housing market everything sells, we believe that in less buoyant circumstances homes with environmental quality and a sense of places, would sell with a premium.

  House builders have expressed concern that they do not want to be building homes which people do not want to live in.

  We believe there is a role for all players in the housing sector to help create a positive vision for what it will be like to live in a low carbon community and provide practical support and advice on how to live in a zero carbon home and the reasons to embrace the lifestyle changes.

  If we were to extrapolate current trends then it might be that the people who actually end up living in zero carbon homes are those tenants of RSLs and the most ecologically committed, ie the poorest and the greenest members of society.

  The majority of the housing which exists now will still be with us in 2050. People who do not want to live in zero carbon homes will still have plenty of choice.

5.  ENABLING DELIVERY

  There is concern that many SME builders will not have the skills, abilities or command of their supply chains to respond to higher levels of the Code.

  There are at least two issues here to be addressed. Firstly, there is a serious issue around skills in the work force to design, install and maintain these homes and technologies. Secondly, the supply chain for these products needs urgent development in the UK.

  There is a role for BERR in encouraging a co-ordinated approach in both these areas. The majority of our experience in EP in respect of the Carbon Challenge is that products are being sourced outside the UK, and mainly from continental Europe and some non-European sources.

  With respect to the Code delivery, where we have on site production of power, we expect that there will issues with excess heat generation, especially if biomass CHP is chosen as the solution.

  Within the definition of zero carbon in the Code, which will shortly be out for consultation, we would encourage incentivisation of heat distribution to neighbouring needs. At the moment BERR does not incentivise distribution of heat from renewable resources. In some circumstances waste heat from zero carbon developments could be utilised in neighbouring existing homes and building if the provision of the distributed pipe network could be subsidised.

  One factor not adequately dealt with by the Code is overheating of homes, exacerbated by improved thermal efficiency requirements, airtightness and the poor rating of concrete solutions. We have therefore introduced a measure to prevent overheating as part of our new Quality Standards—introducing improved thermal mass, shading, shutters and landscaping.

  We have also commissioned research to look at the ways in which EP can accelerate the supply of energy infrastructure to a site. This will include the potential role of Energy Supply Companies (ESCOs) and Multi Utility Supply Companies (MUSCOs).

6.  LAND SUPPLY

  EP is working closely with Government, RDAs and Local Authorities to implement the National Brownfield Strategy which seeks to identify and prioritise brownfield land for appropriate reuse.

  The Strategic Land Division within EP is facilitating the supply of 200,000 homes by 2016 by working with other public sector partners.

  We ran the Register of Surplus Public Sector Land on behalf of the Government. EP has been successful in purchasing or assisting the development of many surplus public sector sites for housing, including 96 former NHS sites and several former MOD sites.

  The other factor which needs to be taken into account is flood risk management in line with PPS25. Under PPS25, the Environment Agency have the authority to take a more stringent line and planning permission is unlikely to be given for new homes in Flood Zone 3 (risk of flooding 1 in 20 to 1 in 100 years).

  Flood risk is often a major factor in bringing forward brownfield land which is not surprising given the heavy reliance on water borne transport and water power for much of the country's industrial period. For instance, recent EP research showed that 41% of all recorded brownfield land in London was located in flood risk areas.

  Furthermore, in November 2008 DEFRA expects to release the Climate Impacts Programme (CIPS) report, which will increase the risk factors and uncertaintanties for storm intensities and coastal surges. The results of this study could significantly increase the number and size of sites within the Flood Zone 3 categories, which in turn could knock on in terms of land availability. We are currently working with the Environment Agency to look at risk quantification, best practice in terms of construction design and alterative productive uses for FZ3 land such as sites for wind turbines and growth of biomass.

  Eco Towns are intended to help meet the need for 3 million new homes across England by 2020, in a highly sustainable way to simultaneously tackle climate change. They will spearhead the house building industry's contribution to reducing the UK's CO2 emissions.

  As the Government's regeneration expert, English Partnerships is supportive of the Eco Towns concept and is currently testing many of its approached and technologies necessary for success through its Carbon Challenge programme, which will build the first communities in England to meet the highest level of the Code for Sustainable Homes, equal to zero carbon.

6 May 2008


 
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