Real estate risks an electric shock from EV rules

COMMENT In December, new regulations were laid before parliament regarding the requirement for new residential and commercial developments to provide electric vehicle charging. These regulations, which will come into force on 15 June, will have significant implications for the real estate sector. The ease, cost and availability of EV charging is critical to support the government’s net-zero carbon strategy, as well as the ban on the sale of new petrol and diesel cars and vans by 2030. Given that around 80% of EVs are charged at home, this policy announcement speeds up the delivery of the EV charging infrastructure to new-build residential properties. The inclusion of new commercial developments in the policy will also provide charging options for EV owners, addressing one of the biggest obstacles to EV take up – the ready availability of charge points outside the home. Of course, no mention is made of addressing one of the other major obstacles – the actual cost of the car. The policy is set to provide 145,000 charge points every year to 2030, and the powers to control compliance will sit within the Building Control Regulations. From 15 June, EV charging points and/or cable routes will be required at new dwellings, including flats, with associated parking; residential properties with more than 10 parking spaces; buildings undergoing material change of use to create new dwellings; residential buildings undergoing major renovations with more than 10 parking spaces; new non-residential buildings with more than 10 spaces; and every non-residential building undergoing a major renovation, again with more than 10 parking spaces. Balancing the need to meet the 2030 deadline with the need to deliver new homes, the government has identified a number of exemptions. For instance, if it costs more that £3,600 per charge point for the grid connection; for changes of use of listed buildings or buildings in conservation areas; or in enclosed or open-sided car parks. Shift in gear Though laudable, this policy objective represents a significant shift in gear for developers and the use of EV charging in new development. Likewise, the emerging details raise a number of important questions for the real estate sector. For instance, power availability and the point at which the power supply must be upgraded are key considerations for developers: taken in combination with the other carbon-saving measures soon to be introduced, what will the impact of the new EV policy be on power availability for major residential schemes? We must also consider the rapidity with which technology evolves. Developers putting in charging points may allow for economies of scale, but those charging points could become obsolete within a few years, or less. Whose responsibility will it be to maintain or upgrade this technology to avoid obsolescence? The government has also proposed an adjustment period of no less than six months, during which time properties that have had their initial/building notices or full plans deposited will not be legally required to meet the new regulations. But this does not cover schemes submitted or approved in outline. For planners and developers, this is a serious concern. Walk the talk? Looking further ahead, the new EV charging policy could have significant implications on town and city planning, as well as public realm. It is possible the policy will trigger a shift back to considerations of how cars feature in new development. This is at odds with recent trends towards car-free development and walkable neighbourhoods – although all modes of transport can and should work together seamlessly in a low-carbon world. Though laden with good intention, the new regulations will cause something of a shockwave across the development sector. From planning and design to final fix, the requirements regarding EV charging points will have significant implications, and finding a new approach to development that encompasses these new regulations will be one of the big challenges for the industry in 2022. Julia Chowings is a partner at Gerald Eve