Eligibility criteria 2 for Residential assets states:
2) Assets are required to be stabilized and have maintained a minimum level of occupancy.
a) Stabilized assets are those are either at least 5 years old OR have achieved a 92% occupancy rate.
b) The asset must have an average occupancy of at least 80% for one year prior to the start assessment. This threshold must be met for the year in which consumption data is supplied.
c) The asset must be intended to be a Primary Residence of Occupants.
The 92% occupancy requirement can be achieved at any point during the asset’s life. An asset is stabilized once this has been achieved, and 92% occupancy does not need to be maintained afterwards.
General occupancy requirements
Unlike Commercial assets, requirements for occupancy apply to both Part 1 and 2 assessments, and all Residential assets must be a year old before assessment.
This is a policy decision to ensure that:
- There is a clear separation between new-build and existing Residential assets. This is to avoid potential confusion for future home buyers or renters.
- There is consistency and comparability between Residential assets by ensuring a consistent level of occupancy.