At a glance
- As a rule, office buildings must have at least energy label C to be used as offices.
- Listed buildings and small office spaces within larger buildings may be exempt.
- Failure to meet the requirement can lead to enforcement action and reduced lettability.
The background to the requirement
The energy label C requirement for office buildings is part of the wider policy to improve the sustainability of the built environment. The aim is to deliver a noticeable improvement in the energy performance of offices and accelerate sustainability improvements or changes of use for outdated properties.
Who the requirement applies to
- Standalone office buildings whose primary use is as offices.
- An exemption for office space accounting for less than a specified proportion of a larger, non-office building.
- An exemption for nationally listed buildings and certain other protected buildings.
- An exemption where the payback period for measures exceeds a specified period.
Consequences of non-compliance
In principle, an office building without a valid energy label C may no longer be used or let as offices, and local authorities can take enforcement action. For owners, this also means reduced lettability and a negative impact on the assessed value.
Measures with the greatest impact
- Improving roof, external wall and glazing insulation often improves the energy label most quickly.
- Replacing lighting with LEDs with occupancy detection.
- More efficient heating, ventilation and air conditioning systems, potentially combined with a heat pump.
- Solar panels as a supplementary measure, particularly effective for an already well-insulated building.
What this means for letting and selling
Offices with a valid energy label C or better generally let faster and with fewer incentives than comparable properties without energy label C. When a property is sold, buyers and investors increasingly factor the required sustainability improvements directly into the asking price.
Frequently asked questions
Does the energy label C requirement also apply to industrial buildings?
No, the requirement specifically targets office buildings. Other commercial premises and logistics properties are subject to different, generally less stringent energy requirements.
What if sustainability improvements are not financially viable?
If the payback period for the necessary measures exceeds a specified threshold, an exemption may apply. Have an energy adviser assess this for each property.