Sustainable Designs on You Housing for Health and Value

It’s the Economy, Stupid! It’s the Economy, Stupid!

– setting the scene – what can be done at a practical level to address sustainable development in housing? – is it just about cost? – What else needs to be considered?

Context

In Scotland there are approximately: – 1.6 million owner-occupied homes; – 233,000 privately rented homes; – 261,477 homes rented from housing associations; – 346,179 homes rented from local authorities.

According to the 2001 census, there are 29,299 second and holiday homes comprising 1.3 per cent of the total housing stock. There are 87,000 empty homes across Scotland.

— It’s the Economy, Stupid! – housing consumes large amounts of resources in its , maintenance and use; – the construction and use of dwellings make significant contributions to greenhouse gas emissions, especially carbon dioxide; – it is a fixed asset with a long life; – can have effects on transport, health, employment, economy and community.

How many houses are being built in Scotland?

In 2006-07 there were: – 20,037 dwellings built by the private sector; – 3,620 dwellings built by housing associations; – just 6 dwellings built by local authorities.

These figures refer to completed new build properties for each of these sectors.

Firm Foundations TARGET: 35,000 homes per year

— It’s the Economy, Stupid!

Social sustainability

House Building Industry – is the largest private investment in Scotland; – contributes £6bn to the economy annually; – Employs 100,000 people. Social Rented Sector – Invests £584 million HAG; plus – £33 million on maintenance across Scotland.

Ayrshire Hanover (Scotland) HA

Environmental Sustainability Homes Bryant Homes West The Burrell Company Tweed Homes Applecross CALA Homes Robertson Homes Macfarlane Homes Miller Homes East The EDI Group Elphistone Holdings Scottish schemes with green features

high insulation levels breathing wall construction thermal mass passive ventilation systems dynamic insulation solar sunspaces solar panels (water only) communal heating ground source heat pumps biomass energy/CHP

We know that these are the kind of things that people are trying… its all about energy.

— It’s the Economy, Stupid!

Midlothian Council’s £105 million House Building Programme will see 1000 new council homes built in the area;

400 went on site in 2007.

New Council Housing In 2007 flatpack houses by IKEA introduced as part of £200million Regeneration of Drumchapel, Glasgow. Increased understanding that the role of housing providers is not just about providing a house...

But – also about social inclusion and social enterprise...

Economic sustainability

Improving health Helping people get training or jobs Setting up social enterprise companies However…

– social and economic is not seen as the whole thing! – the last decade around 15% of developing Housing Associations developed ‘flagship’ new build projects with green features; – significantly smaller proportion attempted sustainable refurbishment; – ‘sustainable maintenance’ – is still to be piloted…

— It’s the Economy, Stupid!

from this disconnection – what can/ would achieve greatest impacts?

— It’s the Economy, Stupid! We need to focus on refurbishment as 99% of housing is existing stock - 80% of the homes we’ll be living in by 2050 are already standing today Source: DTI 2004 The message that comes across time and time again... – too much priority given to cutting emissions from new homes; – much larger problem posed by existing stock still being neglected; – maintaining and preserving is greener than doing new build.

True Impacts It is estimated that 700,000 households - almost 1 in 3 - are in fuel poverty Scottish Government Strategic Target: - end fuel poverty by 2016;

- 80% reduction of CO2 emissions by 2050.

Key Drivers in Scotland Energy Performance of Buildings Directive - a key driver? on the scale from A to G, with A being the top grade for efficiency, the typical house score a dismal E grade. Home energy rating bands GF very E poor D average C good B very good A Super poor Grid, Main heating fuel Electricity, coal oil lpg Mains gas Wood fuel or Smokeless onsite fuel renewables

Main heat delivery system Low temp (with heat pump or /High condensing boiler) mass:Concre te underfloor Electric main heating Old storage Fan assisted Air source heat Ground or air Ground or air systems heating storage pump (200%+) source heat source heat heating pump pump (450%+) (250%+) Gas / oil main heating Old standard A Rated Community systems boiler (55%) condensing CHP boiler (90%+ efficiency) or micro CHP Solid Fuel Main Heating Open fire Modern Closed wood systems closed fuel or system community CHP Main heating system controls Boiler Timer plus Timer plus Timer plus wall Timer plus Multi zone controls only boiler TRVs only thermostat wall weather controls only thermostat compensated plus TRVs controls Main heating system controls Individual with community systems metering and billing Secondary heating systems Open Open coal Closed gas High efficiency none None or high i.e. living room fires etc.. smokeless fire or open fire closed gas fire efficiency wood fuel fire gas fuel system decorative fire

Home Energy Rating Bands (heating) Problems with biomass CHP

Contractual

• Architect into liquidation – appointed new firm to complete project

• Subcontractor into liquidation –RSL took on heat supply responsibility

• Subcontractor refused to attend to defects

Technical

• Defective card readers – tenants getting free heat, faulty cards

• Failure of joints in underground pipe work - replaced 56 joints (dug up 28 gardens)

• Chipboard flooring rotting under vinyl floor coverings

Financial

• Unable to charge enough to cover costs

• Inadequate wood fuel supply

— It’s the Economy, Stupid! Raymondʼs House built 1883

Proceed with caution - energy saving advice may not always be appropriate or cost effective - especially for older buildings. In Scotland it may take over 13 years before most housing has EPCs in place

How likely are the homeowners and landlords to act on information contained in EPC?

— It’s the Economy, Stupid! some improvements automatically generated by the Energy Performance Certificate (EPC) software can be inappropriate, harmful and sometimes even illegal if applied to traditional and historic homes. While some of the energy improvement recommendations may be suitable for traditionally constructed buildings, it is essential that each is considered carefully before allowing them to remain as positive recommendations.

Source: English Heritage guidance one third of energy used in the home is wasted through inefficiency

In addition - it is estimated that:

20% of dwellings have less than 100mm of loft insulation;

Still poor standards 25% through the roof

20% through the windows

35% through the walls

10 %through the doors

10% under the floor

Average heat loss Strategic priorities for addressing fuel poverty

what is the most cost effective and efficient way of achieving Carbon savings over night?

— It’s the Economy, Stupid! one of the most energy efficient forms of housing is the tenement block Specification Cost Per Unit Secondary glazing £ 840 Low energy lighting £ 25 Smart meter £ 60 ‘A’ rated boiler £2434 Loft insulation £ 431 floor insulation £4217 ?? Shutter refurbishment £ 316 Energy management advice £130 Total £8453

Source: Changeworks

Energy efficiency in a tenement www.sesg.strath.ac.uk/downloads/EDEMsetup.exe Source: Vattenfall Low Energy Lighting/ Smart meters kWh/tonne – kitchen recycling; – laminate flooring; – double or secondary glazed windows; – low energy lighting; – A rated appliances; – universal design kitchen cabinets; – low-VOC paints and finishes; – mould-resistant wall finishes; – low toxic worktop.

Kitchen refurbishment Use output specification

- materials to be locally sourced; - timber to be only from sustainable sources (CS GN2005/09); - non toxic materials (including paint); - recycled materials;

- materials with low embodied energy – especially using greater proportion of timber and substituting wood-based products for energy intensive materials; - materials that can be easily recycled;

— It’s the Economy, Stupid! Use output specification

– construction waste to be minimised/recycled; – upgrading in cyclical maintenance: – water conservation increased insulation (wall, roof, floor), – improved ventilation, – prevention of condensation, – environmentally friendly cleaning materials.

– use planting to enhance external environment; – And… fit only low energy bulbs!

— It’s the Economy, Stupid! Healthy materials for health internal air quality

Specifying – benign materials; – materials with hygroscopic properties to help maintain low relative humidity levels in which moulds and mites (two main asthma triggers) cannot survive. Avoiding – materials containing known allergens or triggers (e.g Formaldehyde); – uPVC.

— It’s the Economy, Stupid! Specify

– Timber, timber, timber - but only from sustainable sources - GN2005/09; – non toxic materials (including paint); – materials with low embodied energy; – materials to be locally sourced; – materials that can be easily recycled; – Use Green Directory www.sust.org.

— It’s the Economy, Stupid! Cost Implications

– eco-friendly, healthy materials can be 30% more expensive; – in an average contract, the cost of materials can represent approx. 30% of total costs; – This results in 9% increase in contract total.

— It’s the Economy, Stupid!

Procurement Cost Control: saving achieved in the cost of an average central heating system through collaboration with the supply chain

Overheads and profit £200 Defects £ 60

Labour hours £991 Access £126

Labour overhead £200 Waiting £154

Materials £1200 Travel £392

Prelims £100 Paperwork £ 35

Plant £ 20 Total: £767

Contingency £ 50 Labour: £991

Total cost per dwelling £2761 added value £224 Whole house approach to refurbishment and maintenance

Encourage packages of resource efficient improvements rather than individual measures

— It’s the Economy, Stupid! Life Cycle Approach

Achieving value for money

– LCC is a technique which enables comparative cost assessments for a product to be made over a specified time: – initial cost, – operational costs, – disposal / reuse cost, – any residual value.

– plus: Transportation between stages;

– developers and landlords need to consider the cost implications for the lifetime of the development;

– LCC needs to inform Procurement Strategy.

— It’s the Economy, Stupid! Dreaming about renewables - will this make the future sustainable? Renewable technologies Renewables in existing housing - how big is the market? Capital costs of adding renewables

Solar hot water systems £2,000- £3,000 Photovoltaics £9,000-£18,000 Wind turbines £11,000-£12,400 Micro-hydro £11,000-£12,400 Geothermal heat pump £16,691 Air Source Heat Pump £8,168 Biomass boiler £4,000- £12,000

— It’s the Economy, Stupid! Are they really possible? – embodied energy; – transportation; – maintenance.

Zero Carbon in New Housing – micro-renewables? – large scale? – just buy green energy? – or just use less energy???

Source: Isle of Gigha Heritage Trust

Renewables - the future’s green? – electricity accounts for about ¼ 25% of household energy use; – average electricity consumption circa 4000kWh/year/ household; – manufacturer claims that a 1.5kW turbine produces up to 2000kWh/year; – installation cost £6000; – saving £300/year; – minimum 20 year payback;

– how much CO2 saved?

Micro wind turbines Identified scenarios for 30% CO2 reduction

Measure Approx Saving Basic fabric upgrade plus solar water heating 31 -35% Intermediate fabric upgrade plus solar water 34-36% Intermediate fabric upgrade plus photovoltaics 31 -35% Advanced fabric upgrade plus MVHR system 30-33% Intermediate fabric upgrade and GSHP 41 -47% Intermediate fabric & site wind turbine 30-33% (low capacity) Intermediate fabric & site wind turbine 41 -44% (0.5KW capacity)

— It’s the Economy, Stupid!

Orientation & Configuration – natural ventilation – daylighting – shallow plan – mechanically ventilated – building thermal mass – thermal insulation – integrated renewable energy technologies

Reducing Loads Conclusions - Environmental

- Knowing the score! - Energy saving/ controlling energy use: - specify simple systems and programmers; - position programmers where they can be easily read; - specify smart meters / fit only low energy lighting. - Specifying benign materials; - Reducing environmental impacts including community energy, water efficiency and recycling; - Using output specifications; - Life Cycle Costs; - Procurement Strategy and cost control whole house approach; - Only then embracing renewables - sensibly.

— It’s the Economy, Stupid! Initial lack of confidence in the GSHP & underfloor heating;

Belief that the biomass community heating is expensive when sales showed highest user was spending £16 per week;

Electric boilers – major complaints & bad press with claims of £50 per week heating Costs;

Tests revealed costs of £11.45 - £21.22 depending on house size & Lifestyle.

User Feedback Low Carbon Buildings Programme www.carbontrust.co.uk

Scottish Community and Householder Renewables Initiative www.est.org.uk/schri

Highlands & Islands Community Energy Company www.hie.co.uk/community-energy.html

Scottish Power Green Energy Trust www.scottishpower.co.uk/green

Energy Providers – CERT funding:

Eon energy www.eonenergy.com;

Scottish Southern Energy www.scottish-southern.co.uk

Scottish Gas www.chwdp-scottishexecutive.co.uk;

NPower www.npower.com

Forward Scotland – Small Grant Scheme www.forward-scotland.org.uk

Green Energy Fund/EDF Funding www.practicalhelp.org.uk

Hanson Environmental Fund www.hansonenvfund.org

The ‘Big Lottery’ Fund http://www.biglotteryfund.org.uk/

Innovation Programme www.practicalhelp.org.uk

Key Funding Sources Conclusions - Social

Importance of: – single door access to reliable information/ support; – demonstrating through exemplars that transformed houses will be an investment, attractive, feasible and aspirational; – exhorting, supporting and providing information; – training and retraining users in energy efficiency and controlling heating; – understanding how user behaviour changes over time.

— It’s the Economy, Stupid! Conclusions - Economic

– recognising the scale of the challenge - concerted action from across the sectors; – streamlining grants and revising fiscal policies; – increasing skills; – building capacity of the small building companies; – working in partnership across the sectors; – revising utility tariff structures; – demonstrating that transformed houses will be an investment; – creating the right policy framework and providing the right incentives; – creating a market where profitability comes from selling as little power as possible!

— It’s the Economy, Stupid! For property managers the equation is simple: if we fail to deliver on climate and fuel poverty, we fail our customers and our businesses.

We all need to ensure that Scotland’s 2.4 million existing homes are made fit for the 21st century.

We don’t have a choice but to succeed.

— It’s the Economy, Stupid! It’s the Economy, Stupid!

Break Out