According to new research carried out by Bilfinger GVA, the global real estate advisory business, the property industry is severely lagging behind in preparing for new use sustainability regulations which will come into force in 2018. From 1 April 2018, landlords will be prohibited from letting property to new tenants if the building has an “F” or “G” rated energy performance certificate (EPC). From 2023, a landlord will not be allowed to renew leases in such properties, unless the asset rating is improved to at least an “E” rating.
The survey has found that 43% of participants had yet to assess the impact of the new Minimum Energy Efficiency Standards (MEES) on their portfolios and that short investment horizons appear to translate into less focus on sustainability strategies.
The current number of properties with “F” and “G” rated EPCs is still largely unknown, however, it is likely that this report will give the industry a timely wake up call to start taking the regulations seriously.
The clear message to landlords with commercial property portfolios is to start thinking about the effect of MEES on their business sooner rather than later.
Sustainability and green issues are here to stay and hiding from them in the short term will only serve to create bigger headaches and investment risks in the future.
Please note that this information is provided for general knowledge only and therefore specific advice should be sought for individual cases.
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