The impact of Minimum Energy Efficiency Standards on the UK investment market: one year on

Abstract

Purpose

The purpose of this paper is to provide an update on how the 2018 energy efficiency legislation in the UK, Minimum Energy Efficiency Standards (MEES), is impacting upon the UK market with a particular emphasis on the investment market.

Design/methodology/approach

This practice briefing is an overview of the 2018 legislation and comments on how market awareness has changed since its introduction and the potential impact upon prices of affected properties moving forward.

Findings

This paper discusses how capital and rental values are beginning to be discounted in the market to allow for current and future liabilities under the MEES legislation. This has a significant impact on strategies for property investment.

Practical implications

The role of the property professional is to ensure that clients are fully conversant with their statutory obligations and to advise on appropriate investment strategies to optimise their property portfolios.

Originality/value

This paper provides insights on the requirements of MEES legislation to aid the property professional.

Citation

French, N. (2019), "The impact of Minimum Energy Efficiency Standards on the UK investment market: one year on", Journal of Property Investment & Finance, Vol. 37 No. 4, pp. 416-423. https://doi.org/10.1108/JPIF-04-2019-0046