A significant number of commercial properties may need improvements to meet the Government's 2011 Energy Act. Image courtesy of: sxc.hu
A new survey by property advisers DTZ
found as many as 40 percent of UK commercial properties are likely to require significant improvements in order to meet the government’s 2011 Energy Act
Owners and investors in UK commercial premises are therefore being told to re-evaluate their workspace portfolio and ensure buildings are energy efficient and sustainable by the time the new regulations take effect in April 2018.
The 2011 Energy Act will demand all premises due to be sold or rented for commercial use should have a minimum Energy Performance Certificate
(EPC) rating of E – the rating is graded A-E.
This latest study from DTZ suggests many existing business premises are currently borderline grade E and will therefore require time and money to improve the efficiency of these buildings to protect the investment of property owners.
Paul Brown, head of sustainability at DTZ, said: “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.”
Mr Brown also spoke of the value of commercial property owners implementing changes to their premises as soon as possible, as the cost of finalising energy efficiency work closer to April 2018 is sure to increase due to accelerated demand from unprepared owners.
Ian Fletcher, director of real estate policy at the British Property Federation
(BPF), has also urged owners and investors to act now to complete all necessary improvements.
While Mr Fletcher acknowledged that April 2018 “might sound like a long way off”, owners should seek to carry out work at suitable times in the short and medium term to avoid last-minute hiccups and price hikes.