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New research has revealed that 83 per cent of commercial buildings in seven major cities have an EPC below B.
The analysis of commercial real estate in London, Birmingham, Bristol, Leeds, Liverpool, Manchester and Newcastle, carried out by the British Property Federation (BPF), shows that just two per cent of commercial buildings have an EPC rating of A and a further 15 per cent have an EPC rating of B, shining a light on the scale of the challenge facing commercial real estate as uncertainty over future regulations continues.
Top of the league table is Manchester with 20 per cent of its commercial buildings securing an EPC rating of A or B, followed closely by London with 19 per cent. Leeds and Liverpool occupy mid table with 18 per cent of commercial buildings rated A or B. Coming in bottom of the table are Newcastle at 16 per cent and Bristol and Birmingham where just 15 per cent of commercial spaces in these two cities have an EPC rating of B or above, meaning 85 per cent of commercial assets in these two cities need to be brought up to an EPC B in the next five years, if the proposed 2030 deadline is confirmed, equating to over five million sq. m of commercial floorspace every year.
While 20 per cent of commercial real estate in Manchester has an EPC of A or B this still equates to over 10 million sq. m below EPC B, the equivalent of 83 Arndale Shopping Centres. To bring all commercial real estate in these cities up to an EPC A or B by 2030 would require 94,595 sq. m of space to be upgraded every single day for the next five years.
The current proposals for EPC ratings in the commercial sector, consulted on in 2021, are a target of EPC C by 2027 and EPC B by 2030. To date, there has been no response to the 2021 consultation and this delay makes the proposed interim milestone of EPC C by 2027 unrealistic, and the EPC B by 2030 target increasingly challenging. The commercial real estate sector is committed to decarbonising and improving the energy efficiency of its buildings, but the BPF is urging the Government to publish a full response to the outstanding consultation urgently and work with the sector to ensure the regulations can be effectively implemented.
This research highlights the scale of the challenge in retrofitting our commercial buildings. The BPF is offering to work with Government to help shape the MEES regulations, so as to bring as many properties as possible up to EPC B. However, the sector needs clarity on the timeline for new minimum energy efficiency standards and certainty that the EPC B target will be the end target, to give buildings owners the confidence to make long-term investment decisions. In addition, the BPF is seeking clarity on the rules around exemptions and enforcement and the split of responsibilities between owners and occupiers.
Rob Wall, Assistant Director, British Property Federation, said: “Commercial and industrial buildings account for around a third of all building emissions. The sector has a critical role to play in tackling climate change. Yet the Government continues to keep owners and investors in the dark about future minimum energy efficiency standards.
“Our research shows the scale of the challenge we face in retrofitting our commercial buildings, across all asset types and across the UK. The lack of a response to the 2021 consultation is hugely frustrating and is making a tough situation worse. The targets proposed in 2021 no longer look achievable, and we would call for the proposed interim EPC C target to be abandoned entirely.
“To be clear, we support higher minimum standards, and we are seeing improvements in the EPC ratings of commercial buildings. But progress is slow. If we are to have any chance of hitting an EPC B target by the early 2030s then we need clarity from Government now.”
On 27 February FMJ will be hosting a webinar in partnership with workplace management solutions provider, Matrix Booking, to discuss the challenges posed by managing hybrid work models, meeting sustainability targets, and dealing with economic pressures, which have long required a fine balancing act for Facilities Managers. This is set to become more complicated this year with the Government announcing plans to allow staff to work more flexibly.
The webinar will bring together the digital experts from Matrix Booking alongside a panel of workplace thought leaders to discuss how FMs can create the perfect balance.
Can’t make it no problem… Simply sign up below and after the webinar has been broadcast, we will send you a link to watch the recording. Register for the webinar by clicking here.
