All new-build houses in Wales will from 1 September need to conform to strict new environmental regulations which, says independent planning consultancy DPP, will push up the cost of building new homes by between 5 and 10 percent. The legislation, which was announced in a surprise move by the Welsh Assembly last year, has been implemented in stages, with development schemes of five or more homes needing to meet the new strict environmental legislation from 1 September last year.  From 1 September 2010 all new homes, including self-builders and small scale developers, will need to comply with the strict requirements of Level 3 of the environmental standards known as The Code for Sustainable Homes. Renovations and refurbishments and existing homes do not need to comply. 

Gareth Hooper an associate partner in the Cardiff office of DPP said: “The property market in Wales remains particularly fragile and this step to increase the environmental credentials of new homes in Wales has been widely criticised as political one-upmanship on Westminster and likely to further slow down the delivery of much needed new homes. 

 “These requirements will add considerably to the level of detail required at the planning application stage.  This will have a time and cost implication for developers in preparing applications, which has seen a raft of applications being made before 1st September to avoid the requirements. The requirements of meeting Code Level 3 will also result in an increase in the cost of the construction. Developers will want to pass on these costs, but there seems little appetite amongst house-buyers to pay extra for them. However, the legislation is in place and developers who wish to build just one new home must embrace the new regime.  

“In practice this means developers and self-builders will need to consider the environmental requirements of the Code from the outset, incorporating measures in to the design.  They will also need to undertake a pre-assessment of the proposals ahead of any planning application to ensure that can achieve the strict requirements of Code Level 3.  Once the building is complete, the builder/developer must then be able to demonstrate that they have met the requirements before the house can be occupied.” 

The new regulations require all residential developments to be at least 25% more efficient than those built to comply with 2006 Building Regulation standards, with the Welsh Sustainable Building regulations requiring a 31% improvement. 

Such energy efficiency gains could be made by:

·         Improving thermal efficiency of walls, windows and the roof;

·         Reducing air permeability or ventilation; 

·         Installing a high efficiency condensing boiler; 

·         Carefully designing the fabric of homes to reduce heat loss between inner and outer walls; and

·         Possible use of community heating schemes, and zero carbon technologies such as solar panels or biomass boilers. 

Level 3 of the Code for Sustainable Homes also requires homes to use no more than 105 litres of water per person per day by use of special taps and showers, smaller bath tubs and restrictions on water usage in dishwashers and washing machines. 

The Code also addresses outside surface water management, suggesting soakaways and porous paving. More controversially, developers must give consideration to providing space for drying clothing removing the need for tumble-dryers, providing more energy efficient lighting, providing storage space for bicycles, and providing a room that could easily be used as a home office.

 Gareth adds: “The larger developers may well be able to absorb these costs a little easier than smaller and niche developers. Yet these smaller developers are perhaps better able to recoup these costs by marketing their properties to discerning buyers and those willing to pay a little extra in return for savings in the running costs, in terms of fuel and water bills, of their new home.”