The continuing evolution of energy efficiency requirements for buildings and their legal implementation impacting upon asset valuation

Abstract

Directive 2012/27/EU of the European Parliament and of the Council on energy efficiency, the Energy Efficiency Directive (EED) sets out measures aimed at reducing energy usage from production through to final consumption. Together with the Energy Performance of Buildings Directive1 (EPBD) they drive energy efficiency and building performance improvements and have potentially significant implications for the survey and valuation assessment of buildings. This paper reviews the Article 8 EED requirements on energy audits, the UK approach to such audits, European proposals for revisions to the EED and the EPBD alongside other changes in the law in the UK and the implications for the survey and valuation of buildings in the future given Brexit or otherwise. There are a range of measures now in place, similarly proposed to increase the awareness of energy emissions associated with buildings and encourage reduction of emissions which may increasingly impact on asset attractiveness and valuation.