Yahoo Finance London property decision makers have low awareness of new environmental standards
Less than two fifths of London businesses know how energy efficient their office building is despite new green property legislation coming in next month, survey results suggest.
Companies have been increasingly focusing on their environmental, social and governance (ESG) credentials, but there is low awareness about new standards coming in that could impact whether headquarters are still suitable to be used.
Law firm Irwin Mitchell found that only 32% of 503 UK property decision makers questioned know the energy performance certificate (EPC) of their main office building, while just 31% know what EPC rating their office needs to be in April.
The respective figures in Greater London, where 153 of the respondents are based, are 37% and 33%.
In the UK an EPC has a top grade of A and bottom of G. New Minimum Energy Efficiency Standards (MEES) mean that from April 1 landlords must not continue to let properties that have a rating of F or G, unless they have an exemption. All privately let sites will need to have a minimum rating of E.
Tim Rayner, joint head of real estate disputes at Irwin Mitchell said: “These figures should raise eyebrows, particularly given the changes come into force in April and with further new MEES legislation down the line.”
He added: “We are seeing a real flight to quality in the market. Our survey found 42% of office occupiers on the move in Greater London are looking for higher quality /Grade A space that reflects their brand, provides some flexibility, and keeps their employees happy. Demand for such space is high and at a premium cost. Tenants will need to keep their eyes and ears open if they want or need to move quickly to find suitable new space that fits their ESG credentials and aspirations.”
