UK listed buildings face energy efficiency threat
30 March 2007
UK to apply energy certificates universally to commercial property
European legislation requiring Energy Performance Certificates for offices and commercial buildings was introduced to the UK yesterday (29 March) without any exemptions for older properties, or those of historical value which are listed.
Instead, all commercial property is expected to be subject to the same requirements, under which every building will be graded according to how effectively it uses energy. Certificates showing the grading and recommendations to improve it will have to be made available to prospective buyers, tenants and, in some cases, put on public display. The provisions begin to come into effect in the UK from January next year.
Specialists at LG, a leading real estate and corporate law firm, believe the UK's decision not to exempt listed buildings will present owners and tenants with significant costs and difficulties.
"There will be a tension between English Heritage and owners and occupiers of listed properties," said Catherine Diggle, partner at LG. "The problem will revolve around the conflicting requirements of improving energy efficiency and observing restrictions on alterations to listed buildings."
To date most interest in the impact of the Energy Performance of Buildings Directive has focused on the residential market, but the consequences for commercial property are likely to be considerable and may well drive buyers and tenants away from older, less energy efficient buildings, LG believes.
"The ability to make listed buildings energy efficient is severely restricted and the costs for all older buildings are likely to be significant," Ms Diggle continued. "This is at an early stage, but clearly there are conflicts between the government's desire to make better use of existing development and to encourage the property industry to become carbon neutral."
Notes to editors
LG is a London-based corporate and property law firm with a leading real estate practice advising UK and international investment institutions, fund managers, real estate companies, corporate occupiers, banks, developers and public and local authorities.
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Catherine Diggle
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Robert Adam
+44(0)20 7759 6596