Collaboration with MVGM to create private sector homes with Energy Label A

The challenge: From social housing to private sector with energy label A

MVGM manages a diverse portfolio of rental properties in the Netherlands, including apartments from the 1970s and 1980s with different energy labels. MVGM wanted to transform part of their portfolio into private sector housing (above the liberalization threshold of 187 WWS points) in order to achieve higher rents and make the properties more attractive to a broader target group. The specific goals were:

• Improve energy labels to A in order to maximize WWS points and achieve free sector status.
• Implement cost-effective sustainability measures with a strong return on investment (ROI).
• Comply with the Affordable Rent Act (July 2024) and avoid legal risks, such as rent reductions by the Rent Assessment Committee.
• Making homes more sustainable to offer tenants lower energy costs and greater living comfort, in line with the private sector.

MVGM sought a partner who could provide strategic advice and practical support to realize this ambitious transformation, with a focus on energy label A and WWS optimization.

Our solution: Targeted sustainability measures for private sector housing

We conducted a comprehensive analysis of the 40 homes, using the NTA 8800 standards for energy label determination and the WWS guidelines. Our approach was focused on achieving energy label A and exceeding the liberalization threshold of 187 WWS points, with the following steps:

1. Portfolio analysis:
   • We identified bottlenecks such as poor insulation, outdated ventilation systems, and inefficient heating, with an average heat demand of 160 kWh/m²/year.
   • The current energy labels (C, B, A) did not result in the optimal number of points in the WWS, which limited rental prices.
2. Sustainability measures:
   • PV panels: Installation of 8 solar panels (440WP, All-Black) per home on flat roofs to generate renewable energy and achieve energy label A.
   • Facade and roof insulation: Interior facade insulation (Eurothane G, Rc≥3.5) and roof insulation (PIR panels, Rc≥4.0) to minimize heat loss.
   • Hybrid heat pumps: Installation of hybrid heat pumps alongside existing central heating boilers for efficient heating and cooling.
   • Decentralized heat recovery ventilation: CO2-controlled heat recovery units (Fresh-R Compac) for optimal ventilation and living comfort.
3. WWS optimization:
   • We calculated the impact of energy label A (up to +43 WWS points for the worst labels) and recommended qualitative improvements, such as luxury kitchens (countertop ≥2m, +14 points) and bathroom upgrades (thermostatic taps, closet space, +2 points), in order to exceed the liberalization threshold.
   • We provided accurate WWS point counts to justify rents above the free sector threshold.
4. Subsidy management:
   • We advised on the Sustainable Energy Investment Subsidy (ISDE) and the Rental Property Sustainability Subsidy (SVOH), which reduced investment costs by approximately 25%.
   • Each report included a cost-benefit analysis with ROI, increase in value, and CO2 reduction.
5. Implementation support:
   • We coordinate with any exports and ensure minimal inconvenience for tenants.
   • We collected evidence (photos, quotes, invoices) for energy label registration without additional inspections, in accordance with the guidelines of the national government.

Our reports were strategic, practical, and aligned with MVGM's goal of creating private sector homes with a premium look and feel and sustainability.

Results: Private sector homes with energy label A

The collaboration with MVGM yielded impressive results for the 40 homes:

• Energy label A: All homes to energy label A, with an average reduction in primary energy consumption from 160kWh/m²/year to approximately 80 kWh/m²/year.
• Private sector status: The homes achieved WWS scores above the liberalization threshold of 187 points, with an average of 190 points, allowing them to be rented out as private sector homes.
• Future-proofing: The homes comply with the Affordable Rent Act and future energy standards, with full WWS compliance, thereby avoiding legal risks.
• Sustainability: The measures reduced CO2 emissions by approximately 3,500 kg per home per year, a total of 140,000 kg for the portfolio.

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