CPA: HESS ambitions must be delivered
The Construction Products Association has welcomed the government’s latest consultation on Heat and Energy Saving Strategy (HESS), but has called for greater detail of both the finance and delivery mechanisms if the scheme is to have any chance of being delivered.
Commenting on the strategy, John Tebbit, Industry Affairs Director at the Construction Products Association said: ‘We are pleased the government is beginning to recognise the scale of the problem facing the country. This strategy aims to upgrade every building in the UK by 2030, but the need to scale up the response to match the ambition is still some way off.’
‘To upgrade all 25 million homes in the UK is equivalent to building either a Crossrail project or two Olympics every year for the next two to three decades. This would mean a doubling of the existing housing Repair Maintenance and Improvement spend and we estimate this would require an additional half a million extra workers. If you include all other buildings – schools, hospitals, offices, factories and shops – it probably adds half as much again.’
‘There is no doubt that the industry could deliver these improvements, if given a long term, well funded delivery plan. However, we have outlined in great detail our view of what is needed and submitted this to government. We wait to see whether the rhetoric of HESS will be matched by action on the ground on a scale that is needed.’
Given the size of the challenge the Association does not believe that householders will commit substantial funds to home improvement without both fiscal incentives and regulatory requirements. How these two are balanced over the two to three decades that HESS will take will be a complex and politically challenging task but one that must be successfully achieved.
In advance of the consultation, the Association also launched a short pamphlet entitled “Delivering Low Carbon Existing Housing Stock” which explains the challenges ahead and outlines a number of key issues the government needs to address, including how the current plethora of home improvement initiatives should be co-ordinated in order to deliver maximum benefit to the existing stock.
Other key aspects of HESS include;
. The Climate Change Act requires an 80% reduction in emissions by 2050
. There are 25 million existing homes in the UK. An optimistic refurbishment cost of £10,000 for an 80% reduction in emissions would mean a total cost of £250billion. Evidence from Germany indicates costs could be nearer £30,000 to achieve 60-80% reductions
. HESS estimates upgrading 1.7 million homes a year from 2020 at £10,000 a home, which is £17billion a year. The current housing RMI spend (from Office of National Statistics data for 2007) is £17.7billion
. Typical improvements to achieve 80% reductions for homes would include:
o insulation to all external walls including solid walls and roofs
o upgraded glazing systems
o draught proofing
o new heating and hot water systems including renewables where appropriate and/or community heating systems
o advanced control systems including smart metering
. There is a wide range of incentives that could be used to support householders who wish to improve their homes. These include reductions in VAT, income tax relief on upgrades, lowering Council Tax , adjusting Stamp Duty to reflect the energy performance of homes when up for sale, long term ‘pay as you save’ schemes
. Regulatory sticks could include requiring homes to be upgraded before any sale or setting a minimum level of energy efficiency that was tightened over time. So Band G homes (the least efficient) might have to be upgraded to Band F after say 2015 when they are sold, Band E might then be the minimum after 2020 and so on. There are significant social issues to be addressed with such schemes
. There is no definitive data giving the number of non-domestic buildings that need to be upgraded or their current energy performance. The Energy Performance in Buildings Directive will gradually change this
. Given the sums of money involved and the length of the programme, robust, transparent and credible delivery and reporting mechanisms need to be established. To date there are no mechanisms that achieve these requirements
Notes
The Construction Products Association represents the UK’s manufacturers and suppliers of construction products, components and fittings. The Association acts as the voice of the construction products sector, representing the industry-wide view of its members. The sector has an annual turnover of £40 billion and accounts for 40% of total construction output.
Copies of Delivering Low Carbon Existing Housing Stock are available from the Association or can be downloaded at http://www.constructionproducts.org.uk/publications/Page.aspx?Id=406
For more information, contact:
Simon Storer. Communications and External Affairs Director
Construction Products Association
Tel : 020 7323 3770
Fax : 020 7323 0307
Mobile : 07702 862 257
E-mail : simon.storer@constructionproducts.org.uk
John Tebbit Industry Affairs Director
Construction Products Association
Tel : 020 7323 3770
Fax : 020 7323 0307
E-mail: john.tebbit@constructionproducts.org.uk
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