Property valuation in UK: climate change targets and the value of UK investment properties – a change in sea level[1]
Journal of Property Investment & Finance
ISSN: 1463-578X
Article publication date: 9 June 2020
Issue publication date: 5 August 2020
Abstract
Purpose
The UK government, in late 2019, announced new proposed targets for the energy efficiency legislation in the UK, MEES – Minimum Energy Efficiency Standards. The current suggestion is that all let properties, commercial or residential, need to be B rated by 2030. If this is implemented, it will have a significant impact upon the UK market property 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
This paper analyses the likelihood of (negative) capital and rental value changes under the proposed stricter energy efficiency guidelines.
Originality/value
This provides guidance on how valuations can be undertaken to reflect any impact of the likely changes to UK energy efficiency legislation.
Keywords
Citation
French, N. (2020), "Property valuation in UK: climate change targets and the value of UK investment properties – a change in sea level
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited