{"id":6105580,"date":"2025-06-12T08:50:12","date_gmt":"2025-06-12T07:50:12","guid":{"rendered":"https:\/\/www.buyassociationgroup.com\/en-gb\/?p=6105580"},"modified":"2025-06-09T14:02:03","modified_gmt":"2025-06-09T13:02:03","slug":"tenants-sustainability-25","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/news\/tenants-sustainability-25\/","title":{"rendered":"Tenants are paying extra for sustainability as more investors go green"},"content":{"rendered":"

Whether to reduce their carbon footprint or to live in more comfortable accommodation with cheaper bills, tenants are prioritising sustainability in their rentals – and property investors<\/a> are too.<\/h2>\n

New research has revealed that going green is a growing priority among today’s private rented sector tenants, making it a key trend among landlords looking to keep their competitive edge.<\/p>\n

The rise in interest in sustainability has also coincided with surging energy bills, which are a major consideration among tenants – particularly those on lower incomes or who are trying to save up a deposit to buy their own home<\/a>. Paying a premium for an energy efficient home can therefore be worth it when weighing up the savings on utilities.<\/p>\n

According to Handelsbanken\u2019s Property Investor Report 2025<\/a>, which surveys landlords and property investors across the UK, a huge 92% of investors find that tenants are willing to pay more for greener homes (as well as commercial premises for respondents with commercial properties).<\/p>\n

At the same time, more than three quarters (77%) of investors reported a surge in demand for sustainability features including heat pumps, solar panels and electric vehicle charging points, all of which are becoming more common in homes across the country.<\/p>\n

Sustainability is “more than a buzz-word”<\/h3>\n

The government’s focus on achieving net-zero by improving the energy efficiency<\/a> of the country’s buildings has been a driving force behind some of the shift towards more eco-friendly homes.<\/p>\n

At the moment, all privately rented properties must achieve a minimum energy performance certificate (EPC) rating of E, but there are plans to increase this to a minimum of C by 2030.<\/p>\n

This has sparked some investors to already begin reviewing their portfolios, which may involve selling inefficient properties and reinvesting in newer A, B or C-rated homes; or retrofitting and upgrading existing homes in order to achieve the upcoming minimum rating.<\/p>\n

In Handelsbanken’s survey, more than a third (36%) of investors said the proposed EPC reforms made them feel positive about the market, while more than half (56%) said they see no negative impact from the proposed changes.<\/p>\n

According to the bank, sustainability is “more than a buzzword; it’s a business strategy”, as the market continues to adapt to various economic headwinds, evolving regulations and shifting consumer expectations.<\/p>\n

Richard Winder, Head of Sustainability at Handelsbanken plc, said: \u201cWe\u2019ve seen landlords\u2019 thinking mature over recent years in response to clear market signals. Investing in sustainable features offers a rare opportunity to woo good tenants, grow revenues and preserve tomorrow\u2019s financial value, while cutting long-term operating costs.<\/p>\n

“As regulations tighten and our worsening climate moves centre stage, the clamour for more sustainable and resilient buildings will only grow.\u201d<\/p>\n

Tenants want more from their rentals<\/h3>\n

The message from Handelsbanken’s report is that tenants are increasingly expecting their rental homes to keep up with sustainability trends, while being willing to pay for the privilege.<\/p>\n

More than half (57%) of tenants are now asking for electric vehicle charging points, while 47% of landlords say tenants are demanding higher EPC ratings of C or above.<\/p>\n

This is likely to influence how landlords are investing, with more of an interest in new-build<\/a> or newly renovated properties that have the highest energy efficiency credentials. These are likely to not only be more future-proof when regulations change, but to attract the highest number of tenants and the strongest rents.<\/p>\n

Landlords are also optimistic about the performance of their property portfolios, with 80% expecting the value of their portfolio to rise despite market uncertainty, while 54% plan to expand their portfolios over the next 12 months.<\/p>\n

James Sproule, UK Chief Economist at Handelsbanken, added: \u201cSustainable properties aren\u2019t just good for the planet, they\u2019re good for business. In a market where competition is fierce and tenants have choices, going green is the edge that can make the difference. Those who adapt will thrive; those who don\u2019t risk being left behind.\u201d<\/p>\n

Want to stay ahead of the market? Get in touch with BuyAssociation today<\/a> to find out about our future-proof investment opportunities with sustainability features.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Whether to reduce their carbon footprint or to live in more comfortable accommodation with cheaper bills, tenants are prioritising sustainability in their rentals – and property investors are too. New research has revealed that going green is a growing priority among today’s private rented sector tenants, making it a key trend among landlords looking to… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":6105584,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,4,59],"tags":[667,275,533,515],"class_list":["post-6105580","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy-to-let-landlords","category-investment","category-trending-news","tag-energy-bills","tag-environment","tag-green-homes","tag-sustainability"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6105580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=6105580"}],"version-history":[{"count":4,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6105580\/revisions"}],"predecessor-version":[{"id":6105585,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6105580\/revisions\/6105585"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/6105584"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=6105580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=6105580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=6105580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}