PROPERTY experts say an avalanche of new legislation and rules is about to hit the balance sheet of every company in the UK.

Property consultancy King Sturge is warning that the property market is waking up to an approaching storm of sustainable issues.

And, in a plea to the Government, it says too many directives are being issued.

Owners, investors and occupiers of commercial property are all facing cost implications as new rules impact on company profit and loss accounts, according to Dr Angus McIntosh, partner and head of research at King Sturge.

He said: "The main issue facing the property market is the growing and changing number of regulations, ranging from United Nations initiatives to European Union and UK enactments. And we ain't seen nothing yet.

"In addition to climate change, which is likely to worsen, occupiers of buildings and investors in property will be faced with the need not only to show corporate social responsibility, but also to comply with other new rules and regulations.

"The property market has only now begun to wake up to the storm of sustainable issues approaching."

Jonathan Sykes, partner in charge of King Sturge's Newcastle office, said the "plethora of new sustainable related rules and regulations" would affect property investment funds.

He said that research indicated many property investors had not yet fully understood the asset liability that would be incurred from the legislative changes and the cost of compliance in terms of asset performance.

Mr Sykes said: "The outcome of these new regulations will undermine land values and make development less profitable.

"Global warming, for instance, will continue to result in the rise of insurance premiums on an annual basis."

A report by King Sturge said that owners and occupiers of property would increasingly be under pressure to address the sustainable agenda, to improve their competitiveness in the market, lower their risk management and mitigate the cost of insurance premiums.

Mr Sykes said: "At the moment, there are too many government departments overseeing bits and pieces of the sustainable laws coming into effect.

"They appear as a mish-mash of directives coming from different sources such as The Ministry of Transport, the Department of Trade and Industry, Office of the Deputy Prime Minister, Department for Environment Food and Rural Affairs and tax changes from HM Treasury."

According to King Sturge, all of this should be pulled together and overseen through one central government department to make the understanding and implementation of these rules easier.

Published: 02/11/2004