As much as 20% of total UK commercial stock could become unlettable in 2018 if the necessary action is not taken to improve the sustainability of existing stock.
Independent commercial property adviser GVA has presented to Government a raft of what it believes to be workable solutions to help ensure it hits challenging carbon reduction targets set at both EU and UK level.
Commercial buildings represent a key part of the solution to reducing carbon emissions, accounting for around 18% of total emissions in the UK. Currently, the Government is placing reliance on the Green Deal to help deliver the commercial real estate element of its carbon reduction commitments. However, GVA believes that this alone will not be sufficient and is pushing for an urgent review.
The Government has set a target for all new commercial buildings to be zero carbon by 2019. Recent legislative changes in the form of the Energy Act 2011 mean it will become unlawful to let the most energy inefficient commercial buildings by 2018 (i.e. those with an EPC rating below E). GVA believes this makes up 20% of the UK’s total stock.
David Mace, regional senior director at GVA in Bristol comments: “In just 6 years, we could be in a position of not being able to let around 20% of total UK stock. We strongly believe the Government will find it very difficult indeed to engender large scale uptake of the Green Deal with commercial property. We are calling on Government to investigate additional means of driving energy efficient building improvements through changes in the way commercial property is taxed.
“Major opportunities exist for cost effective energy and carbon reduction measures to be introduced but the correct incentives need to be in place. We’ve identified four means in which the tax system could help instil a more effective rate of change. These comprise incentivising through stamp duty land tax; incentivising through the business rates system; introducing rating exemptions for plant and machinery; and changing the way capital allowances are calculated.”
GVA’s research report entitled “Challenging the government on sustainability: incentivising through tax”, is available at www.gva.co.uk/research
