the colour of your lease
The Climate Change Act 2008 set a target of an 80% reduction in
green-house gas levels by 2050. Buildings are the source of half of
all green-gas emissions in the UK and so, if this target is to be
achieved, the energy efficiency of buildings is a prime target for
improvement.
The Companies Act 2006 imposed a new legal duty on company
directors to have regard "to the impact of the company's operations
on the community and the environment". All this means that serious
consideration should be given to "green" leases.
A green lease is a standard lease that includes additional
clauses requiring landlords and tenants to work together to develop
and improve the sustainability of buildings, maximise energy
savings and drive down green-house gas emissions. In January 2007,
the Centre for Research in the Built Environment published a
good-practice guide for incorporating environmental best practice
into (commercial) leases. In April 2009, the Better Buildings
Partnership published a green lease toolkit.
what this means for social landlords
Social landlords should be thinking about whether to include
'green' clauses in their leases. The cost of constructing or
renovating a green building is initially more expensive although
over time the operating costs should be reduced and the increased
energy efficiency should safeguard the property value.
For further information please contact Martin Hirst, partner in
the Real Estate team on T: 023 8085 7474 or email martin.hirst@bllaw.co.uk.
