How Kuflink is pioneering net zero homes
Everyone is talking about energy and the cost of heating our homes and businesses. The rising cost of gas, oil and electricity has accelerated the UK’s cost of living crisis, putting more focus on renewable energy, net zero carbon emissions and alternatives to gas, petrol and diesel products.
The government has set a target of reaching net zero by 2050, but many property experts believe that they can and should go further than that.
Kuflink is aiming to reach net zero itself by 2030 and is confident of achieving this once the development of its new corporate offices is complete.
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From the very beginning of each new project, Kuflink looks favourably on developments that consider their carbon footprint, this includes the consideration of alternative heat and power sources as well as thermal and sound insulation.
“Passivhaus standards in design are the ultimate design principle that we are now looking for but we recognise we are still early on this journey of compliance,” says Narinder Khattoare, chief executive of Kuflink. “So the new Building Control Approved standards are the minimum that we would accept and would want to see evidenced.”
Heat pumps, solar panels and other green energy alternatives have become extremely popular in recent years. As an agile, hands-on lender, Kuflink can work with developers in setting certain standards for the properties it is funding.
“A developer that is demonstrating this level of understanding of its responsibilities in carbon neutrality is dealt with by us as a lender with greater interest in lending as it demonstrates a strong understanding of a projects’ viability and hence ability to achieve the re-term, or sale that our investors want reassurance can be achieved,” Khattoare adds.
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“Higher thermal and integrated ventilation standards in all elements of construction should be built into the initial design from the ground floor upwards, we are looking at the entire building envelope as a single entity now that requires a comprehensive approach to achieve carbon neutrality.”
Kuflink supports its borrowers by embedding certain net zero targets right at the beginning of a new build project. The platform requires evidence of building control approval of scheme design at an early stage of the build, and this helps developers who may be less experienced understand the regulations early so that they can factor this into their costings.
“We cannot take on design responsibility as a lender, but our investors are looking at the quality of the build and its compliance level and this is becoming an important consideration of how we look at a possible loan,” says Khattoare.
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For refurbishment projects, the main consideration is the energy performance certificate (EPC). At the moment, Kuflink expects an EPC of C or above for new or refurbished properties if lettings or sales are planned as the exit strategy. Going forward, Khattoare says he wants to raise the company’s target EPC.
UK Finance recently called for the EPC chart to be updated to better reflect the challenges of updating the energy profile of older properties. Khattoare agrees that the current model should be changed in order to differentiate between new builds and refurbishment projects.
“A blanket range is not reasonable to apply to the refurbishment of old properties against new build when the technology to achieve that higher standard in refurbished or historic buildings are not yet available and planning controls presently in place do not enable this,” he says.
“Although we are noting improvements in the technology, this will enable us to expect these higher standards in all property and this is something we would support.”
Going forward, Khattoare would like to see more investment in new technology designs which can help property developers to meet their net zero targets more efficiently.
“The regulatory framework for new build and some refurbishment works are already there,” he says.
“What is missing is the investment in new technology design and promotion and this could be improved with targeted investment credits against tax liability for both the design of the products and its implementation.”
Until then Kuflink will continue to do its bit to support its borrowers as they work to achieve net zero, sooner rather than later.