Energy efficiency for property owners
Pennington Energy consultants help property owners protect their assets and improve commercial property value using their extensive commercial property agency experience to advise on cost effective energy efficiency improvements to buildings.
"Energy efficient buildings are increasingly demanded by occupiers in a world of spiralling energy costs businesses need to become energy efficient to protect their future."
Premium property values will be achieved for energy efficient buildings with low operational costs whilst inefficient buildings with high operational costs will devalue.
Not only do the financial costs associated with energy inefficiency have an impact upon tenants decisions regarding the occupation of buildings government is also ramping up legislation to ensure buildings are made more energy efficient.
The Energy Act 2011 has been ratified - it provides for a step change in the provision of energy efficiency measures to buildings including a number of factors that will directly affect investment property:-
- From April 2018, it will be unlawful to Let out a residential or business premises that does not reach a minimum energy efficiency standard (likely to be EPC rating 'E').
- Landlords will be unable to let a property banded 'F' or 'G' until appropriate improvements have been made.
- Significant numbers of commercial properties will require improvements to meet this legislative criteria.
- Building owners need to be aware that the onus will lie with them to ensure properties meet the required standard.
- For existing properties with leases which expire beyond 2018 but have rent reviews prior to 2018 the affect on rental value is likely to be taken into account by tenants seeking to negotiate the best terms.
- From April 2016 landlords will not be able to refuse "reasonable requests" from tenants, calling on them to use the Green Deal to improve their property.
- If commercial buildings are labelled A–G with a simple Energy Performance Rating tenants have a choice – those with better ratings will be more desirable cheaper to run and therefore easier to let or sell.
Whist these measures do not come into effect immediately the ramifications will impact upon commercial leases that extend beyond 2018 but are being signed now – Landlords need to start looking at the implications in order they can understand what needs to be done to the buildings assess the costs and plan to develop an effective strategy.
IF YOU HAVE A COMMERCIAL BUILDING AND WOULD
LIKE TO UNDERSTAND HOW THESE ISSUES
AFFECT YOU PLEASE CALL TO DISCUSS: