Property valuation in the UK: energy efficiency legislation and its impact on valuation

Abstract

Purpose The purpose of this paper is to provide an insight into how the new energy efficiency legislation in the UK is impacting upon the valuation of certain properties. This paper looks at how to adapt implicit valuation models to reflect the new risks of the impact of legislation. Design/methodology/approach This practice briefing is an overview of the new legislation and comments on the appropriateness of valuation models in different scenarios. Findings This paper analyses the likelihood of capital and rental value changes under the new energy efficiency guidelines. Practical implications The role of the valuer in practice is to identify the impact of the new legislation on the value of the subject property and choose the correct model for the valuation task in hand. Originality/value This provides guidance on how valuations can be undertaken to reflect any impact of the new energy efficiency legislation.