Landlords 'unprepared' for energy deadline

by Sarah Ashcroft

Many landlords are failing to take action to improve the energy efficiency of their properties ahead of the government's minimum performance standards in 2018, new research from GVA has revealed.

According to the organisation's Green to Gold survey, proprietors must take more action to reduce carbon emissions from their residences and offices by the deadline in a bid to avoid operating illegally.

New government regulations will ban landlords from letting residential and commercial properties that do not meet a minimum energy performance certificate rating of E, reports Property Week.

The move is set to have a series of implications for landlords and property investors after research revealed that one-fifth of offices are currently below this standard.

Analysts conducting the Green to Gold study found many proprietors underestimate the value of achieving sustainability targets within the deadline, with only ten per cent deeming the issues "very important" - down from 20 per cent in 2010.

It was discovered some landlords are rendering the energy efficiency of their properties as less of a priority than they should be due to poor conditions currently being experienced in the market.

However, GVA noted failure to make properties more sustainable could affect its performance, while tenant rentention will also be impacted alongside yields, voids and rent levels.

Commenting on the study's findings, Alastair Mant - head of sustainability at GVA - said many landlords seem to be unsure of how to monitor the risks and benefits associated with energy efficiency - an issue that must be addressed if the industry is to make progress.

He added: "Time is of the essence as mandatory reporting, minimum performance standards and rising operating costs are all starting to impact investors and occupiers. Factoring sustainability into investment decisions is vital if assets are to perform now and into the future."

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Published on: December 4, 2012

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