Energy Act could damage letting industry, says LSH
New legislation on the energy efficiency of buildings could leave landlords with unlettable premises, according to the Bristol office of property agency Lambert Smith Hampton (LSH).
The company said The Energy Act 2011, which recently received Royal Assent, will have a "significant effect on property values", leaving some landlords struggling to lease their properties.
Under the new act, it will be unlawful to let buildings with F and G rated Energy Performance Certificates after April 2018.
Darren Sheward, head of Lambert Smith Hampton's Bristol office, said the degree of risk attached to F and G rated properties would get higher as the 2018 deadline approached.
"Investors and landlords who are on the ball should, even now, be identifying which of their properties are at risk of falling foul of this new legislation and putting a plan in place to improve the future environmental performance of their properties," he said.
"This legislation could have a significant impact on the marketability and value of investment stock over the next five years and beyond.
"Landlords are already under a huge amount of pressure in the current climate. Additional expenditure will undoubtedly impact on the market, particularly for secondary stock where we are already seeing the affect of physical obsolescence on pricing and marketability."
Government figures suggest that as much as 18 per cent of buildings with an Energy Performance Certificate fall into the bottom two categories.
