3. Time is on our side (but only for a little while)
With ESG factors increasingly influencing property investment decisions, buildings that have a high EPC rating are more attractive to investors than worse-rated buildings.
Fact: although only 15% of EPCs are currently rated below E, 85% are below B.
Whilst it’s easy to see how investors can discriminate against a relatively small number of substandard buildings now – even if they are exempt – it may be far harder to mark down much larger numbers of exempt buildings in the future.
That said, although the risk to the value of C- to E-rated buildings may be widely over-stated, there is no doubt that scarce A- and B-rated buildings may well command a substantial premium from investors and occupiers working towards net-zero carbon targets.
Talk to Remit Consulting’s Charles Woollam about your long-term ESG strategies.