Currently there is no guideline for real estate valuators to include energy efficiency within their valuation reports. The lack of documented value of retrofit measures is a barrier to many homeowners doing upgrades, as it prevents them from earning a return on investment on their energy efficiency measures upon their home’s future sale.
To remove this financial disincentive for homeowners willing to invest in energy efficient renovations, it is essential that energy efficiency and other sustainable measures are taken into account in the valuation of property. The main steps that need to be taken in order to achieve this are:
- To inform valuators about the value of energy efficiency improvements and other sustainability measures;
- To create consensus on the way EE is valuated;
- To establish dialogue and discussion.
The Green Buildinvest Initiative (GBI) has recently initiated a dialogue with the main valuating stakeholders within the Dutch stakeholder platform (RICS and TEGOVA), and is discussing the possibility of organizing a workshop for valuators. Ultimately, the aim is to integrate the workshop into the Dutch Valuation network curriculum, in which valuators are educated and regularly update their knowledge. The use of International and European Valuation Standards (IVS/EVS) will facilitate the replicability of the workshop. This could lead to a European education programme on energy efficiency and valuation.