|
Dear Sir/Madam,
A Stern Warning
Sir Nicholas Stern recently presented his report on the Economics of Climate Change to the Prime Minister and the Chancellor of the Exchequer. It’s the most comprehensive review of the economics of climate change – ever.
 It seems that unabated climate change risks raising average temperatures by over 5°C from pre-industrial levels. Such changes would transform the physical geography of our planet, as well as how and where we live our lives.
The Government is advised to take action to reduce greenhouse gas (CO2) emissions to avoid the worst impacts of climate change. In brief, we have to move to a low-carbon economy to avoid catastrophe.
There are three main recommendations:
- Carbon pricing e.g. through taxation
- Technology policy e.g. to drive low-carbon and high-efficiency products
- Action to remove barriers to energy efficiency, education and awareness
How buildings affect climate change
The air you have heated or cooled in your building tends to leak to the outside environment whenever there is a temperature difference. The factors which influence heat loss and heat gain from a building include how it is oriented to the sun, its surroundings and design features such as size and placement of windows, the materials insulating the walls and ceilings, the infiltration (how much air leaks into and out of the building), and energy-using equipment such as lights, computers, fans and water heaters.
What does that mean for property owners?
The UK contains some good, sustainable buildings built with Modern Methods of Construction and proper insulation to avoid heat escaping. But it also contains many old Victorian buildings with expensive heating costs.
There may come a time when traditional buildings are not so sought after, as there will be additional expenses to make them carbon friendly, and high taxation if not.
Already there are plans for residential properties to have their energy efficiency measured next year, and the results may affect their market value.
Valuation surveyors will have to take energy efficiency into account when they value commercial buildings
If a building doesn’t comply with upcoming regulations, it will be worth less than a building that does comply (because of the cost of putting things right). We believe this will immediately polarise buildings into Haves and Have Nots – those that do comply with any new regulations, and those that don’t.
This will affect rental and capital values whether for occupation or investment.
The Stern Review can be downloaded at www.sternreview.org.uk
...........................................................
This is part of a regular series of topical articles provided exclusively by RDN Surveyors. If you would like any further information or add your own comments please reply to this email or contact Roger Nelson on 0800 902 0466
|
|
|
