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A Government clampdown on energy inefficiency may prevent commercial property owners from selling up to ten per cent of their portfolios.
Due to proposed regulation, commercial buildings that do not meet strict environmental standards will be prevented from being sold or leased.
Under the Government proposals, which are due to come into force by 2020, the sale or lease of commercial buildings that fail to achieve an Energy Performance Certificate (EPC) grade F or higher will be banned.
Marc Blomfield, managing director of EPC provider, The National EPC Company said:
"Under Government regulation this will render a lot of properties unusable in their current condition.
"Energy efficiency improvements will have to be made in order to achieve an acceptable EPC rating."
"However, I would expect the value of a property which has been upgraded to meet the EPC criteria to increase dramatically.
"I would advise commercial property owners to act immediately on the recommendations laid out in an EPC to ensure their property is compliant with up-coming regulation at the earliest opportunity. This will avoid costly delays in property transactions once new legislation is in place."
08.08.11
An innovation in version 7 of the RICS Red Book guides Surveyors to consider the EPC result when valuing property. Further direction expected this month is likely to suggest that property values could be increased by 2 – 3% in relation to the green credentials of a property.
