Commercial mortgage news: clear energy labels 'should be mandatory'

19 May 2011

Written by Jeni Browne

Investors who have used commercial mortgages to make purchases in the private sector should consider the efficiency of their buildings, after one expert said it is necessary for all commercial properties to have clear energy labels.

Overall energy consumption of these locations must be clearly labelled as an incentive for landlords to make improvements in energy efficiency, according to David Clark, sustainability partner at consulting engineers Cundall.

The government should also use its purchasing power and refuse to use buildings with low efficiency to ensure people with properties to rent, such as commercial mortgage holders, conform to their energy standards, he added.

"There is a bit of work to do there," Mr Clark concluded.

Display Energy Certificates (DECs) are mandatory the public sector, but the private sector requires Energy Performance Certificates that use building regulations and computer models to estimate energy consumption, instead of real data.

The UK Green Building Council and the British Property Foundation recently called for government commitment on ratings for energy efficiency and senior figures in the industry wrote an open letter to David Cameron urging DECs to be compulsory in all sectors.

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