Office landlords could be set to spend up to £63 billion to achieve proposed EPC targets

In accordance with Savills research 85 % of office share in the major United kingdom office markets happens to be ranked an EPC ‘C’ or below, whilst 800 million sq ft will be below the proposed minimal EPC ‘B’ rating. In line with the indicative price modelling to help make the required enhancements, Savills says it might cost UK landlords just as much as £63 billion to attain EPC targets across crucial UK cities on the next eight yrs.

While every asset is various and can require different degrees of intervention to satisfy the required changes, there are always a true amount of typical enhancements which can be designed to improve most buildings. This might are the usage of LED lighting, removing gas towards electricity (significantly from renewable resources) and smart power metering.

Mat Oakley, Head of Commercial Analysis at Savills, commented: “In 2021 we saw a lot more than 90 % of leasing action being to find the best quality workplace accommodation in a few locations. That is clearly an indicator that tenants are searching for prime room with great ESG credentials. The way to obtain such space is bound over the UK, with just around 10 % of office structures having an EPC ranking of B or above. This will imply that rental pressure will stay on top quality offices upwards, and therefore justify the devote to bringing secondary fill up the EPC ladder generally in most major office marketplaces.”

Jack Pugh, Director in the Developing & Project Consultancy group, said: “At the moment the average EPC ranking for a industrial building in the united kingdom stands at Quality ‘D’, meaning a substantial proportion of existing constructing stock shall be influenced by the proposed modify of regulations. As a landlord with share below a ‘B’ ranking, it is very important take the chance to focus on that building before proposed deadlines and undertake enhancements to obtain at the very least a Quality ‘B’ to be able to future-evidence the asset whenever we can. What’s clear will be that legislation shall just tighten in the arriving years, and operational energy intake will be scrutinised, which will push the to take action; hence, it is imperative to get ahead to make the needed improvements by yourself conditions.”