The Chancellor Plans an Ambitious Target to Reduce Building Energy Demand

The UK Chancellor Jeremy Hunt has announced that the country is committed to reducing energy consumption from buildings and industries by a significant measure. By the end of the decade, the Chancellor is eyeing a reduction of energy consumption by 15 percent of the energy consumption level of 2021.

The pledge was a part of the various commitments announced by the Chancellor in the recently released Autumn Statement.

By 2030, we want to reduce energy consumption from buildings and industry by 15%," Hunt said. Reducing demand by this much means, in today's prices, a 28-billion-pound saving from our national energy bill or 450 pounds off the average household bill."A new Energy Efficiency Taskforce (EETF) will be formed to help achieve this rather challenging target. EETF will deliver an additional 6bn in investment, planned during the next parliament. The task force will also oversee the delivery of energy efficiency improvements from homes, businesses, and the public sector.

The 6bn in investment announced in the Autumn Statement is nearly double the government's existing financial commitments made during the current parliament.

Propertymark, the UK's leading membership body for the property sector, has welcomed the announcement. The agency trade body said the property sector could play a crucial role in helping the government achieve these targets. They have been lobbying for financial support to fund energy efficiency measures for some time. Propertymark has also called for Stamp Duty incentives and broader funding to make homes more energy efficient.

Mary-Anne Bowring, Group CEO at The Ringley Group said "Its good to see the UK Government is showing an understanding that massive investment in our aging UK housing stock will not only help them reach targets but is also necessary to drive behaviour change, tackling the energy efficiency of homes and businesses is the most effective way of reducing householders bills and cut carbon emissions from millions of homes and buildings.

Many previous schemes have performed poorly. We have yet to hear the detail of how the additional spending pledged by the Chancellor will be used. What is needed is real incentives so that homeowners and landlords are encouraged to invest in measures that work for their properties.

The Department for Business, Energy, and Industrial Strategy (BEIS) is drawing up its own plans to help the government achieve a net zero target without placing excessive burdens on consumers and businesses. In response to BEIS plans, Propertymark (who represent Letting Agents) has called upon the government for more realistic energy-efficient targets, as well as for the government to support the sector financially to be able to achieve the targets.

Ringley joins Propertymark in calling for Stamp Duty discounts for those who improve low EPC-rated homes. Not only may this help in stimulating DIY and small building works, but it may also succeed in bringing long-term empty properties back to the market.

It is clear that a lot more needs to be done to make businesses, homeowners, and the general public aware of the environmental and financial benefits of these plans to tenants, landlords, and homeowners. To achieve the net zero target, the government must draw concrete steps for reducing bills and emissions. More jobs must be created in green industries. As a country, we need to be self-sufficient in our own energy production.

To the government's credit, they have launched a public awareness campaign and have intensified it. This is not yet enough as 65% of what needs to happen to get to net zero targets is 'behavior change'. We need smart meters, we need to know the saving we will achieve if we buy an A ***-rated appliance compared to an F-rated one - and, thus saving needs to be translated into not only money saved but carbon saved also.

The general public needs to wholeheartedly embrace electric cars or no cars. Every business needs to add a green message on every transaction, the rail industry, for example: when you buy your train ticket and are reminded that traveling by train emits 70% less carbon dioxide than traveling by car.

The public awareness campaign is expected to extend the reach of messaging around energy usage in a cost-effective manner.

Ringley Asset Management supports capital investment in the UK living sector bringing forwards future homes that are built to energy-efficient standards and benchmarked to accreditations such as Fitwel, Breeam, the Home Quality Mark, and others. Ringley takes a full lifecycle approach to ESG, to find design efficiencies when selecting products, fixtures, fittings, and appliances and in considering BMS and BOS systems that can connect with residents' apps to drive behavior change.