Embodied Energy (EE)
The reality of Pathfinder is one of a Vicious Circle of: a: Social disruption, with established communities destroyed and repeats of the mistakes of the 1960s
b: Developers placed in a monopolistic position c: Low new build numbers d: Perpetuation of the blight
Previous examples of rejuvenating Liverpool have included the creation of a garden festival and the building of Liverpool One shopping centre, which some observers claim caters for the Cheshire uber class. These co-called ‘solutions’ do not address the underlying problem of poor disadvantaged urban areas, where often there is a low skill base and low paid jobs.
LCC’s latest scheme, as shown over three fairly recent Channel 4 programmes, is a pilot scheme of a few hundred, one pound vacant house sales, but there appeared to be a potential risk of low levels of compliance. Further, these projects would still probably be in negative equity if one took account of open market building costs, party wall fees, contract administration, and a realistic percentage in respect of risk and profit.
THERE HAS TO BE A BETTER WAY OF REJUVENATING A CITY!
My Alternative Solution would be one of retrofitting properties with due financial allowance reflecting Embodied Energy (EE).
EE is defined as: ‘A measure of the total amount of energy used in the production of the material from the abstraction of the raw resource, through the processing stages and in the manufacture of the final product’.
In the case of a traditionally constructed late Victorian house, the principal materials would be bricks, timber and slates. Given that transportation would be required in respect of raw materials, i.e. from the clay pit to the brickworks and site delivery from Welsh slate mines, the energy for this would need to be included. Since different forms of energy generation have different environmental impacts, it is sometimes considered that, as climate change is the most pressing concern, it is the amount of carbon dioxide released during the production of a material that is more significant, so the concept of ‘embodied CO2’ is a more useful measure of environmental impact.
A brief consultation with my accountant confirmed that it would be potentially possible to attribute the value of the EE, which is equivalent to, say 30-40 years of occupational energy use, by way of a grant or tax credit, thereby creating a more positive outcome to feasibility studies. Acceptance of the EE principle by the Treasury could potentially turn negative equity outcomes into positive equity in feasibility studies. Further investment rates of return would be increased.
Such adoption would allow for greater flexibility when undertaking refurbishment schemes e.g. by way of moving towards better standards of upgrade such as Passivhaus, which adds approximately 10-15% to project costs, or AECB accreditation.
The Passivhaus approach, which provides a high quality standard of insulation and consequential energy saving and increased comfort, was originally designed for residential units but has now been adopted for commercial properties. Commercial owners are interested since, given that the three ingredients of tenant overheads are rent, rates and service charge, by adopting the Passivhaus approach the last element can be reduced and the rents and, therefore, the rates of return on investment can be increased.
In the case of the client’s property, since market values were low, even a low acquisition cost of £45,000 and £75,000 upgrade meant that she was in negative equity. With EE she would have been in positive equity, however.
As an alternative to urban regeneration, the acceptance by the Treasury of the financial value of EE, adopted in feasibility studies, could potentially create a Virtuous Circle whereby there is: a: More efficient use of existing housing stock with positive equity outcomes and increased rental returns and possibility of superior retrofitting techniques such as Passivhaus
b: Reduced commuting c: Lower environmental impact on refurbishment rather than new build d: Boost to construction technical training e: Learning of new life skills and creation of better paid jobs f: Boost to urban areas as construction is widely considered by economists as the quickest way of rebooting an economy
g: End of blight of tinned up empty buildings h: A partial alternative to the housing shortage and which would assist in easing the building trades skill shortage
In short, we could move from a Vicious Circle to a Virtuous Circle.
This is an area of activity which is well suited to the skills of the Building Engineer, in terms of specification and monitoring of work, and which I believe the CABE should become involved.
For my part, following further investigation, my aim is to proceed towards my own 300 house exploratory study with a view to attracting private investment for high standard Passivhaus or near equivalent upgrades.
To this end I am looking to identify product manufacturers, eg. insulation products, heating and ventilation, windows and glazing etc., who would be willing to support and invest in a pilot project showcase house suitable for upgrading.
Any interested parties should contact me on
timlaundon@yahoo.co.uk
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