Nearly 50% of London’s commercial properties might be unlettable by 2027 if they don’t meet new energy efficiency rules, according to experts.
The new standards could require all rented non-residential buildings to have an Energy Performance Certificate (EPC) rating of ‘B’ by 2030.
At the moment, 87% of office buildings in major UK cities are rated ‘C’ or lower.
Landlords will need to make upgrades to meet these requirements.
Graeme Dick, Principal Consultant from procurement consulting firm Proxima, commented: “The requirement for all non-domestic rented buildings to achieve a minimum EPC rating of ‘B’ by 2030 presents a real shift in the commercial property landscape.
“With 87% of office stock in major UK markets currently rated ‘C’ or below, the scale of this challenge is clear.
“What’s particularly concerning is that over half of inner London’s commercial properties could become unlettable by 2027 due to the looming minimum energy efficiency standards (MEES) legislative changes, highlighting an urgent need for landlords to invest in substantial upgrades to their buildings’ energy systems and insulation.
“These changes, which are already costly, pose significant challenges for landlords and property managers to mobilise the necessary resources and expertise to meet these stringent requirements.”