REVALUE

The objective of the REVALUE project is to increase transparency in the valuation process in relation to the energy characteristics of buildings, especially with regard to the social housing sector. The REVALUE partners have undertaken research by gathering and analysing data regarding residential portfolios owned by Registered Social Housing Providers in four European countries (UK, Netherlands, Germany and Spain). The data gathered has been both quantitative (regression analysis) and qualitative (interviews, case studies and round tables). In their interim report, the consortium identified that energy efficiency is not yet a notable driver in terms of the market value of dwellings in this particular market segment. However, whilst energy efficiency and energy ‘labels’ such as EPCs do not drive values, certain building characteristics associated with energy efficiency, such as double glazing, are gaining in importance. Dwellings which are falling below rising levels of occupier expectations are increasingly likely to suffer ‘brown discounting’. For social housing providers, the business case rests, not directly on market values but on the health and well-being of tenants. Energy efficient stock is seen to lead to less tenant default and greater tenant retention both of which bring investment benefits. Moving forward, this has implications for both the financing of retrofits and for making the case for more explicit client instructions to valuers in relation to energy efficiency characteristics.