EeMAP - Energy efficiency Mortgage Action Plan
The objective of the EeMAP initiative is to create a standardised ‘energy efficiency mortgage’ and offer borrowers reduced interest rates and/or increased loan amounts in line with the reduced credit risk of these loans.
RICS is leading the valuation work package in the Horizon2020 funded Energy efficient Mortgages Action Plan (EeMAP) initiative, a mortgage financing initiative to support energy efficiency improvements in residential buildings.
At the heart of the project is the assumption that energy efficiency has a risk mitigation effect for banks as a result of lower probability of default and long-term value creation.
This means that energy efficient mortgages will represent a lower risk on the balance sheet of banks and could, therefore, qualify for a better capital treatment, which in turn will help the market to price in the added value of energy efficient real estate.
RICS is contributing to this initiative by developing training, an inspection checklist and instructions for banks on how to value these properties. The ability of valuers to advise on the impact of energy efficiency is a key piece for lenders to calculate mortgage affordability without increasing the credit risk and thus allowing additional funds to be provided to the borrower. A better understanding of the relationship between energy efficiency and value is also important for a more robust and risk sensitive property rating in the loan
Project start date
09/06/2017
Project end date
07/06/2019
