Study of over 1,000 buildings finds energy requirement from 2018 will decrease many buildings’ value
Around 40% of commercial buildings will need upgrading if they are to meet proposed energy efficiency standards set to come into force in 2018, a study has revealed.
The regulations, set to be introduced under the Energy Act, would make it unlawful for landlords to rent property which does not have an energy performance rating of E or above on its energy performance certificate (EPC).
The changes form part of the government’s plans to reduce the UK’s carbon emissions by 80% by 2050.
A study by property services company DTZ looked at the EPCs of more than 1,000 buildings and found that 40% achieved a borderline E rating or below.
Paul Brown, head of sustainability at DTZ, said: “These proposed regulations could have a significant impact on landlords leasing property. Final details are yet to be confirmed but once the proposals are launched, we will no doubt begin to see discounts being factored into property acquisitions to cover the improvements needed to make buildings sufficiently energy efficient in order to meet the required standards.”
“Some landlords may view 2018 as too distant to start worrying now but many improvements will need to be factored into asset plans and the nearer we get to 2018 the greater the demand and the more expensive it will be to implement changes,” he added.