Smart, Sustainable Solutions for Cost-Effective Property Management
Published: 27/11/2024
As the UK moves closer to its ambitious net-zero carbon targets, we need to upgrade our building stock. More than half of the residential property in England is below Energy Performance Certificate (EPC) C. In September 2023, Rishi Sunak removed the tightening of energy efficiency standards in the private rental sector, however, the new Labour government is set to reverse this. They have pledged to ensure homes in the private rented sector meet minimum energy efficiency standards (MEES) by 2030; whether that will be EPC C has not yet been confirmed but around 3.7 million dwellings are below EPC C for the private-rented stock.
With increasing pressure to comply with Minimum Energy Efficiency Standards (MEES), property managers face the dual challenge of meeting evolving sustainability standards and controlling costs so they need to act now to future-proof their buildings. Fortunately, sustainability doesn’t necessarily mean huge expenses. Thoughtful upgrades, smart technologies, and financial incentives can reduce environmental impact, cut operational costs, and enhance long-term property value. Here’s a detailed guide for property managers committed to making their buildings more sustainable.
Understanding Sustainability Standards in the UK
The push for sustainability is underpinned by regulations like MEES, requiring properties to meet minimum energy efficiency standards. Currently, landlords can’t rent properties with an EPC rating below E, and future targets could raise this threshold to C by 2030.
For property managers, these changes are more than just regulatory requirements, they’re opportunities. Meeting sustainability standards ensures compliance, and reduces operational costs, and buyers and tenants are increasingly prioritising sustainability, making green-certified properties more attractive in the market. From an asset management perspective, sustainable upgrades, such as energy-efficient systems or renewable energy sources, often increase property value.
Energy-Efficient Upgrades That Make an Immediate Impact
Investing in energy efficiency is one of the quickest ways to improve sustainability. Here are some practical, high-impact upgrades:
LED Lighting
Switching to LED lighting is cost-effective and transformative. LEDs use up to 80% less energy than traditional bulbs and last up to 25 times longer, significantly reducing both electricity and maintenance costs.
Smart Thermostats and Zoning Systems
Smart thermostats, such as Nest or Hive, learn usage patterns to optimise heating and cooling. Pairing these with zoning systems allows different areas of a building to be heated or cooled based on occupancy, reducing unnecessary energy use.
Energy-Efficient HVAC Systems
Old heating, ventilation, and air conditioning systems are often energy guzzlers. Upgrading to high-efficiency models with better SEER ratings (SEER stands for Seasonal Energy Efficiency Ratio. It is a measure of the energy efficiency of air conditioning or heat pump systems over an entire cooling season) reduces energy consumption. Pairing a HVAC system with heat recovery units could capture and reuse waste heat, creating additional energy savings.
High-Performance Insulation
Upgrading insulation in walls, roofs, and floors can drastically reduce energy loss. For older properties, adding cavity wall insulation and loft insulation is a quick win for improving thermal performance.
Window and Door Upgrades
Double or triple glazing reduces heat loss and external noise. Sealing gaps around windows and doors with weatherstripping is a low-cost improvement that immediately enhances energy efficiency and resident comfort.
Renewable Energy Systems
While these systems require a significant upfront investment, if the property is viewed as a long-term investment, solar panels or ground-source heat pumps can dramatically lower energy bills over time. Pairing solar panels with battery storage allows buildings to store and use renewable energy.
Innovative Smart Building Technologies
Technology is reshaping how buildings operate, offering property managers new ways to optimise energy use and enhance sustainability:
IoT Sensors
Internet of Things (IoT) sensors provide real-time data on energy consumption, helping managers pinpoint inefficiencies and make data-driven adjustments. For example, sensors can dim lights or adjust HVAC systems in unoccupied spaces.
Energy Management Systems (EMS)
EMS platforms centralise the control of energy systems like lighting, heating, and cooling. These systems automatically adjust operations based on occupancy and weather conditions, minimising energy waste.
Smart Water Meters
Smart water meters monitor usage and detect leaks early, saving water and preventing expensive damage. For properties with landscaping, integrating smart irrigation systems can optimise water use based on weather patterns.
Building Automation Systems (BAS)
A BAS integrates various building systems into a single platform, offering property managers centralised control. Features like automated shading, lighting schedules, and temperature adjustments improve efficiency and tenant comfort.
Financial Support: Grants, Incentives, and Tax Breaks
To offset the cost of sustainability upgrades, property managers could receive financial support:
Enhanced Capital Allowances (ECA)
Property managers may be able to claim tax relief for investments in energy-efficient equipment, including HVAC systems and LED lighting through the government's Enhanced Capital Allowances Scheme.
Boiler Upgrade Scheme
This grant offers up to £7,500 for replacing old gas boilers with air-source or ground-source heat pumps, making it easier to transition to renewable heating. Buildings with qualifying tenants or residents could benefit from this Boiler Upgrade scheme funding.
Energy Company Obligation (ECO4)
The Energy Company Obligation (ECO4) is a government scheme in Great Britain that aims to improve the energy efficiency of homes and reduce carbon emissions. ECO4 is a whole-house retrofit approach that involves installing multiple measures in a property. The scheme focuses on improving the least energy-efficient homes, which are in bands D-G.
Depending on their circumstances, tenants can claim funding from their energy supplier for energy efficiency improvements including insulation and low-carbon heating systems. All tenants in the development would need to qualify for the funding to be received for the whole building. Eligibility criteria can be found here.
Local Council Initiatives
Many councils offer grants or interest-free loans for green upgrades, such as solar panel installations or EV charging stations. Check if your local council has any suitable initiatives.
Salix Finance Loans
For property managers within housing associations and other public sector housing, Salix provides interest-free loans for public sector organisations to fund energy-saving projects, which can be a valuable resource for public housing managers.
Additional Tips for Sustainability Success
Engage Tenants and Occupants
Educating tenants about energy-saving practices, such as using thermostats effectively or switching off unused appliances can reduce energy usage and costs. Creating incentive programs for tenants who help reduce energy consumption can be a good way to engage.
Monitor and Maintain
Regularly audit building systems to ensure they’re operating efficiently. Preventative maintenance for HVAC systems, insulation, and renewable energy setups helps avoid costly repairs and prolongs their effectiveness.
Work with Experts
Partnering with consultants like Harris Associates ensures access to tailored advice, helping property managers prioritise upgrades and navigate financial incentives effectively.
The Long-Term Value of Sustainability
Investing in sustainability benefits property managers far beyond compliance. Energy-efficient buildings attract eco-conscious tenants, reduce operational costs, and improve asset values. In an increasingly environmentally aware market, sustainable properties offer a competitive edge.
Harris Associates is dedicated to helping property managers achieve sustainability goals without exceeding budgets. Whether you’re upgrading building systems, applying for grants, or planning long-term sustainability strategies, our team is here to support you.
If you'd like to learn how we can help you create a more efficient, compliant and future-proofed property portfolio Contact us today