New green property law is a ‘ticking time bomb’ set to hit explode in the face of commercial landlords warns law firm Mace & Jones.
By next April, commercial property with a floor area of more than 500m2 or public buildings more than 1000m2, must have an energy performance certificate before selling or renting.

The property law firm Mace & Jones says many commercial landlords are unaware of upcoming changes in property law. In a further twist the new rules mean investments could fall in value if buildings fail to go green.

The energy performance certificate will grade a building between A and G according to factors such as the age of the building, heating, ventilation, air conditioning, roof insulation, double glazing, lighting, and use of water as well as carbon dioxide emissions per square metre of floor space.

Mace & Jones property specialist Amanda Hurst said 'We have discovered that many commercial property owners and occupiers think that these certificates apply only to domestic home owners putting together their Home Information Packs.

'But the government's aim is to make all property owners aware of their responsibility to the environment to help them meet their target on reducing carbon dioxide emissions.

'The energy performance certificates will be a legal requirement for business property owners and those who flout the law could face severe penalties.'

The new rules could result in buildings falling in value if they score badly in energy efficiency assessments.

'These certificates will radically change the market place as buyers and tenants will be able to weigh up the cost of maintenance - as well as the cost to the environment - when deciding where to buy or rent.'

By October 2008, all the necessary information about the buildings should be collated and an accredited energy assessor employed to produce a certificate and advisory report. The energy assessor must register the documents, which will be stored for at least 20 years.

This requirement will be followed up by imposed inspections of existing air conditioning systems over 250kw in early 2009 and over 12kw in early 2011.

The law firm is advising commercial landlords to start collecting information straight away and assess the cost to their company of commissioning the certificates.

The law states an accredited energy assessor will need to be employed but as yet these do not exist and landlords are advised to identify firms who can give practical guidance.

The question of who will end up paying for the certificates is yet to be answered. Many in the industry are seeking clarity on whether this will be a cost absorbed by the landlord or a cost passed on to the tenant.

Exempt from the rules are buildings used primarily or solely for worship, temporary buildings with a planned time of two years or less, non-dwelling stand-alone buildings of less than 50m2, industrial sites, workshops and non-residential agricultural buildings with low energy demand.

The UK has implemented an EU directive through the Building and Approved Inspectors (Amendment) Regulations 2006 and the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007.

For more information go to the Department of Social Development website at: http://www.dsdni.gov.uk