Research into the Allocation of Heat and Energy Efficiency Related Costs in Rented Non-domestic Buildings Commercial Leases Research Project

Summary

The UK aims to decarbonize heat in nearly all buildings to achieve net zero, but market failures, particularly split incentives between landlords and tenants, hinder energy efficiency improvements in the 1.66 million non-domestic rented buildings in England and Wales. This research project, completed in 2022, investigated how responsibilities and costs for heating, cooling, and energy efficiency upgrades are allocated in commercial leases through surveys of over 600 tenants and interviews with 37 experts. The findings reveal a complex and varied distribution of cost responsibility, which depends heavily on the type of equipment, its integration, and the sector, underlining the challenge for future policy development.

Key Facts

Source Document

https://example-government.gov/policy-document-link