Green property law is a ‘ticking time bomb’
New property regulations are being introduced which mean that investments could reduce in value if buildings fail to go 'green'.
Come April, commercial property with a floor area of over 500m2 or public buildings more than 1000m2 must have an Energy Performance Certificate before selling or renting. The certificate will grade a building between A and G according to factors such as the age, insulation, light, heating, ventilation and economical use of water. Other owners and occupiers have until October 2008 to acquire the certificate.
Radical change
One property specialist said: "These certificates will radically change the market place as buyers and tenants weigh up the cost of maintenance - as well as the cost to the environment - when taking decisions. It will make commercial sense to cut down on energy waste."
By October, all information should be collated and an accredited energy assessor employed to produce a certificate and advisory report. The energy assessor must register the documents, which will be stored for at least 20 years. This requirement will later be followed up by regimes imposing inspections of existing air conditioning systems over 250kw in early 2009 and over 12kw in early 2011.
HIP follow-on
The requirements follow on from the controversial introduction of Home Info Packs last year in the residential market.
Exemptions include buildings used for worship; temporary buildings;; industrial sites, workshops and non-residential agricultural buildings with low energy demand; non-dwelling stand-alone buildings of less than 50m2.