Green targets will be met despite downturn
MIPIM 2012: Property chiefs have told the government that sustainability targets will be met despite the economic downturn.
Delegates at a MIPIM event today heard that, from no later than 2018 - and potentially sooner - all F- and G-rated residential and commercial properties could be unlettable under the government's 2011 Energy Act.
It has been estimated that this will affect 18% of all commercial properties in the UK - some 600,000 properties.
Delegates heard that there is unlikely to be a "green premium" - higher rents or values for better-performing buildings - as government legislation eating into the value of F- and G-rated properties, forcing landlords to respond to avoid obsolescence.
BPF chief executive Liz Peace said: "The property industry is doing a great deal despite the economic downturn to put its house in order. The economic woes have made things difficult, but sustainability as an issue isn't going away, and faces becoming more and more business critical."
Drivers Jonas Deloitte head of real estate management and valuation, Phillip Parnell, said: "This is where the valuation community can most clearly articulate differentials in value through variances in, for example, void, CapEx and relet assumptions, and where we are arguably therefore already witnessing value shift now.
"This trend looks set to continue as regulatory mechanisms and legislation targets weaken certain existing stock; and consequently where many property investors are most exposed."