Surge in Demand for Sustainable Properties
As a MortgageWatch journalist, I’ve been following the latest trends in the UK property market, and one thing is clear: tenants are demanding sustainable properties like never before. According to a recent report by Handelsbanken, almost 100% of property investors have received requests from tenants for sustainable features in the past 12 months. This is a staggering statistic that highlights the growing importance of environmental considerations in the rental market.
Sustainable living is no longer a niche concern, but a mainstream expectation.
Heat Pumps, Solar Generation, and EV Chargers: The New Norm
The report reveals that 92% of investors have received requests for sustainable features such as heat pumps, solar generation, or EV chargers. This is a significant shift in tenant expectations, and landlords who invest in these features are not only meeting this demand but also future-proofing their assets.
“Our customers are seeing tremendous demand from tenants for sustainable properties that can help reduce both their environmental footprint and their utility bills.” - Lisa Robey, Handelsbanken Milton Keynes branch manager
EPC Ratings: The New Benchmark for Sustainability
The report also highlights that three in five tenants (58%) have requested properties with an Energy Performance Certificate (EPC) rating of C or above. This is a significant increase from the current minimum requirement of E or above set by the government. In London, this figure rises to 88% of tenants, demonstrating the importance of energy efficiency in the capital.
London leads the way in sustainable living, with tenants demanding the highest EPC ratings.
Government Regulations and the Future of Sustainability
While the government’s plans to raise the minimum EPC rating to C for existing residential rentals by 2028 were scrapped last year, landlords are still embracing the drive for sustainable assets. In fact, 72% of respondents surveyed by Handelsbanken would welcome new rules raising the minimum EPC rating to A for commercial and residential lettings.
“Property investors are clearly recognising the long-term value of maximising energy efficiency across their portfolios, and are eager to meet the highest sustainability standards to capitalise on the commercial benefits.” - Richard Winder, Handelsbanken UK Head of Sustainability
Conclusion
The surge in demand for sustainable properties is a clear indication that tenants are no longer willing to compromise on environmental concerns. As the UK property market continues to evolve, it’s essential that landlords and property investors adapt to meet this growing demand. By investing in sustainable features and embracing the highest EPC ratings, landlords can not only attract tenants but also secure their assets for the future.
The future of the UK property market is sustainable, and it’s up to landlords to lead the way.
