Energy efficiency rules could devalue property
New energy efficiency rules could devalue nearly a fifth of commercial properties.
The Minimum Energy Efficiency Standards (MEES), which require properties to get a minimum “E” rating, mean 19% of shops, offices and warehouses could become legally uninhabitable and fall in value by up to 10%.
The new legislation could wipe as much as £16.54 billion from the UK’s property portfolio, according to a new report from software and analytics firm CO2 Estates.
A team of arbitrators and solicitors quantified the financial risks posed by MEES, which is planned to apply to new leases and lease renewals from April 2018 onwards.
Maureen Eisbrenner, Managing Director of CO2 Estates, said: “Landlords and tenants are being forced to reassess the energy performance of buildings because legislation has, for the first time, created a mechanism for monetising energy efficiency.”