Would you find it helpful, to know the energy efficiency or sustainability star rating of a residential property before you purchased or rented it? It would certainly help buyers and renters make an informed decision about each property’s environmental credentials so they could value it accordingly.
Energy Rating Systems for Property
There are already energy rating systems like NatHERS. (Nationwide House Energy Rating Scheme) and GBCA (Green Building Council Australia) that have been in place for many years. These tend to be more relevant during a residential property’s construction, and there is limited further disclosure to subsequent buyers or renters after that.
Anyone leasing commercial office space, can set their search to only include offices that meet a particular environmental rating. That is because it is compulsory for agents to disclose the NABERS (National Australian Built Environmental Rating System) star rating when advertising office space over 1,000 sqm. Tenants looking for new space can enter a NABERS rating on their search criteria in realcommercial.com.au.
ESG (Environmental, Social, Governance) ratings also enables investment funds to make an informed decision on these issues before buying into the institutions that own commercial, industrial and retail property.
Will homes have compulsory energy ratings?
Is it therefore just a matter of time before a similar environmental disclosure star rating is in place for residential property every time it is sold or leased? The rating criteria may not just be pure energy efficiency and could include things like fresh air ventilation and natural light. In apartment buildings, it could also include the overall building construction and operations, such as its energy efficiency, how the building deals with recycling and waste management, use of solar energy, rainwater capture or water recycling.