Introduction: Navigating a New Era
The UK property sector is on the cusp of a wave of regulatory change. In the coming years, we’ll see stricter rules around building safety, energy efficiency, carbon reporting, and accessibility.
These changes are driven by a need for greater transparency and sustainability across the board – and property owners and operators will need to stay ahead to remain compliant and competitive.
To prepare for this new era, building owners will need the right tools in place. Platforms like Building Passport offer a practical, future-proof solution, simplifying compliance and providing a reliable way to manage the complex data requirements these regulations bring. Here, we pull out the crystal ball and have a look at what we think could be on the horizon.
Note: These are just our predictions on where building regulations might go – so keep an eye on official sources for the latest updates!
What Does the Future Potentially Hold?
1. Extending the Building Safety Act to More Building Types
The Building Safety Act has already set new standards for high-rise residential buildings, focusing on improving safety and accountability. However, it’s expected that these requirements will soon apply to a much wider range of buildings, including commercial and low-rise residential properties.
Why? Safety risks aren’t confined to high-rises – the Grenfell tragedy highlighted the need for a safer built environment across all building types. There’s a strong consensus across the sector that extending these requirements is the next logical step. Building owners should prepare now to streamline safety data and documentation processes (Deloitte, 2023).
2. The Golden Thread Requirement Across the Sector
The golden thread principle – maintaining a continuous record of safety-critical information throughout a building’s lifecycle – is currently a must for high-risk buildings. But we’re likely to see it applied universally before long.
Why? Safety data transparency is essential for effective building management, and it’s proven to save both time and resources when it comes to compliance checks and audits. Extending the golden thread principle across all property types ensures that safety-critical information is accessible and up-to-date at all times (CBRE, 2023). With a platform like Building Passport, building owners can centralise and manage this information easily, setting themselves up to meet these rising expectations.
3. Tougher Minimum Energy Efficiency Standards (MEES)
The Minimum Energy Efficiency Standards currently require rental properties to have at least an EPC rating of E. However, by the late 2020s, the minimum requirement will almost certainly rise to an EPC rating of C or above for both residential and commercial properties.
Why? The UK government has set ambitious net-zero goals, aiming for a 78% reduction in carbon emissions by 2035. Buildings are responsible for around 40% of UK emissions, so stricter energy standards are a logical (and essential) step (gov.uk, 2023). Tenants and investors alike are also placing greater emphasis on sustainability, and properties that don’t meet these standards risk becoming uncompetitive.
4. Carbon Reporting Set to Become Mandatory for Large Portfolios
Currently, carbon reporting is largely voluntary, with frameworks like GRESB providing a guideline. But with a growing emphasis on transparency, mandatory carbon reporting for large portfolios is almost inevitable.
Why? Tenants, investors, and regulators are increasingly prioritising transparency around environmental impact. To meet sustainability targets and public demand, mandatory carbon reporting provides the consistency needed for stakeholders to compare assets on a like-for-like basis (JLL, 2023). Building Passport’s digital platform supports carbon tracking, enabling building owners to stay on top of these requirements as they evolve.
5. Higher Standards for Accessibility
Accessibility standards are currently limited, but with an ageing population and increased awareness around inclusivity, stricter requirements are on the way.
Why? As expectations around inclusive design grow, property owners are under pressure to make spaces accessible to all. Future regulations will likely mandate these standards not only for new builds but also for retrofits and refurbishments, making it critical to track and document accessibility features effectively (McKinsey & Co., 2023).
The Role of Digital Tools
With these changes on the horizon, building owners need to adopt digital solutions to stay compliant. Here’s how digital platforms can make a difference:
1. Centralised Document Management
A digital platform like Building Passport provides a single, secure repository for all building documents. By centralising data, owners can access, update, and share records easily, meeting the demands of the golden thread principle while reducing time spent managing files. Centralised documentation ensures that records remain accessible and organised, essential for a smooth compliance process.
2. Automated Tracking and Alerts
With automated tracking, digital platforms can send alerts for upcoming compliance deadlines, regulatory updates, and required documentation. These automated reminders help owners avoid costly fines and penalties, ensuring compliance doesn’t fall through the cracks.
3. Adaptability for Future Regulations
As regulations evolve, digital platforms can quickly adapt to new requirements, saving owners the hassle of manually overhauling their systems. From energy efficiency data to carbon reporting, platforms like Building Passport are flexible enough to support a wide range of compliance needs.
What Next?
While digital tools are invaluable for compliance, there’s still room to make them even more efficient and effective with cutting edge features:
1. Automated Document Organisation
Manually tagging and categorising files can be time-consuming. Building Passport is developing an AI-powered categorisation tool that automatically organises and tags files based on their content, eliminating the need for manual input and reducing the risk of misplaced information.
2. Search-ability
Finding a specific document is one thing – but locating a particular clause or detail within a document can be another challenge entirely. Building Passport’s upcoming AI-powered search feature will allow users to search for specific information within documents, ensuring that critical details are accessible instantly. This functionality is invaluable in managing large volumes of compliance data and meeting stringent regulatory timelines.
3. Cross-Compliance Tracking
While many platforms focus on one area of compliance at a time, the future lies in integrated compliance solutions that address multiple requirements simultaneously. A platform that can manage safety, energy, accessibility, and carbon data in one place would allow building owners to streamline compliance across multiple regulations.
Building Passport
Building Passport offers a streamlined approach to document management, compliance tracking, and data search-ability:
AI-Driven Document Organisation and Search: Building Passport’s advanced AI can categorise documents automatically and search for specific information within them, helping building owners manage compliance requirements efficiently.
Centralised Data and Compliance Management: Building Passport centralises all building information in one place, making it easy to keep records up-to-date, meet the demands of the golden thread, and provide access to information quickly when needed.
Flexibility to Evolve with Regulatory Changes: Building Passport’s adaptable platform supports changing regulations. Owners can consolidate all their information, from energy efficiency metrics to accessibility standards, helping them stay ahead of evolving compliance requirements without the need for constant system overhauls.
Conclusion
The UK property sector is entering an era of more rigorous regulation, and staying compliant will require a proactive, digital-first approach. Platforms like Building Passport not only simplify compliance but also future-proof assets, positioning building owners to navigate complex regulatory landscapes with ease.
Embracing digital solutions today means property owners can be confident in their ability to meet tomorrow’s requirements. By centralising data, automating processes, and enabling quick access to information, Building Passport provides an invaluable tool in the drive for safer, greener, and more inclusive buildings. The future of compliance lies in leveraging technology – and those who take that step now will find themselves best placed to adapt to the property sector’s evolving demands.
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