MCBAINS COOPER
PROPERTY & CONSTRUCTION CONSULTANCY
PRESS RELEASE
April 23, 2012.
NEW ENERGY EFFICIENCY RULES: A FIFTH OF PROPERTY IN LINE
TO BE EXCLUDED FROM RENTAL AND LEASE MARKET.
A fifth of
commercial and residential property may be excluded from the rental and lease
market as soon as 2015 unless owners move to comply with energy efficiency
rules.
Legislation is
already in place which states buildings with a rating of F or G on their Energy
Performance Certificate (EPC) cannot be let out after 2018 without works having
been carried out to raise the rating level.
But property and
construction consultancy McBains Cooper says it has reason to believe the
measure may actually be introduced as early as 2015 as part of the UK’s
commitment to reduce carbon emissions – something which ties in with the
government’s track record of bringing forward some elements of new legislation.
“It might be
considered an asset, but it may actually be a liability – and sooner than
expected; in summary, if a commercial or residential property doesn’t comply,
and its owner for whatever reason wants to switch it to being let out after the
anticipated deadline, then he can’t. The owner can, however, renew existing
leases, but that owner is potentially exposed should tenants decide to move out
of an F- or G-rated building after the deadline date,” said Anthony Coumidis of
McBains Cooper.
“We estimate
that around one in five buildings fall into the F/G EPC category, including
many listed or historical properties. Property owners therefore have only
around 1,000 days to raise the efficiency ratings of F/G level buildings, or
face them having to stand empty. In some cases, planning permission may be
required, which, bearing in mind upgrade designs may need to be drawn up, can mean
months of delays before work can actually start.”
In a bid to
partly reduce the potential cost impact of the new EPC rules, the government’s
“Green Deal” plan comes into operation in October 2012 - the basic concept
being that residential and commercial property owners will be encouraged to
upgrade the thermal values of the building fabric and to introduce higher
efficiency, or renewable-based, HVAC (heating, ventilation, air-conditioning)
technology.
Under the Green
Deal, the capital cost of the approved works can be covered in the form of a
loan which will be repaid over a set time period as an additional sum on the
property’s energy bills. The Green Deal finance is attached to the
property rather than the occupant, and if a building is sold or let, the
liability for repayment of outstanding Green Deal finance will fall upon the
new incoming owner or tenant.
“But for some
commercial properties in particular, the most appropriate and cost-effective
means of upgrading efficiency ratings may not fall within the Green Deal
criteria. What’s more, some owners and tenants may be uncomfortable with what
is essentially a loan secured on their property - and may wish to fund
improvement work direct,” said Anthony Coumidis.
Ends
Further
information:
Iain Macauley
07788
978800
@McBainsCooper
Notes.
McBains Cooper
McBains Cooper is an
inter-discipline consultancy, specialising in property, infrastructure and
construction, offering a wide range of consulting and design services including
architectural, aesthetic or technical design, problem solving, budget
management, facilities management, health and safety, sustainability
consultancy and on-the-ground civil engineering. Driving and supporting
projects ranging from minor works to major contracts worth more than £100
million, McBains Cooper operates across a variety of sectors throughout
the UK , Europe and Latin America . McBains Cooper is committed to
environmental, social and economic sustainable development and their integrated
approach means they deliver effective, award-winning solutions to their
clients. The Group employs 150 people. McBains Cooper has regional headquarters
in London (head office), Glasgow ,
Manchester , Oxford ,
Windsor , Lima (Peru ), Miami and Mexico , with associate offices in Belfast and Dublin . www.mcbainscooper.com
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