A recent survey conducted by DTZ suggests up to 40 per cent of
all UK commercial properties could fall foul of the government's
2011 Energy Act.

UK commercial property owners and investors are being encouraged
to assess their portfolio, ensuring it meets new energy efficiency
regulations that are set to come into place in April 2018.

The 2011 Energy Act will require all premises that are rented or
sold for commercial use to have a minimum Energy Performance
Certificate rating of grade E. According to DTZ's latest research
many properties are currently borderline grade E and are therefore
going to require investment to improve their efficiency and
sustainability.

There is growing concern among property professionals that
owners could experience a dramatic decline in office space values unless work is carried out
to enhance energy efficiency.

Paul Brown, head of sustainability at DTZ, said: "Final details
are yet to be confirmed, but once the proposals are launched, we
will no doubt begin to see discounts being factored into property
acquisitions to cover the improvements needed to make buildings
sufficiently energy efficient."

Mr Brown also indicated that the cost of finalising energy
efficiency work in the workplace is likely to increase closer to
April 2018 due to heightened demand from ill-prepared businesses
and investors.

Ian Fletcher, director of real estate policy at the British
Property Federation (BPF), has spoken out at real estate investors
to encourage them to avoid making necessary improvements to their
properties at the last minute.

Mr Fletcher acknowledged that although April 2018 "might sound
like a long way off", property owners should be savvy and seek the
most suitable time to make required changes.

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