92% of UK Property Investors Report Tenants Asking For Eco-Features

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Vast Majority of Investors Received Sustainable Feature Requests in Past Year

According to a survey from property business expert Handelsbanken, the vast majority of property investors in the UK have received requests from tenants for sustainable features in the past year.

Handelsbanken’s annual Property Investor Report has revealed that 92% of investors surveyed report tenants asking for sustainable features such as heat pumps, solar generation, and EV chargers. Over a quarter (28%) have received requests for EV chargers in particular.

They also found that 58% of tenants have requested properties with an Energy Performance Certificate (EPC) rating of C or above, and this rises to 88% for tenants in London, likely due to high energy costs and affordability of constraints.

The survey participants were UK buy-to-let property investors with an average of 35 properties each. Why not read our dedicated guide to property investment for some insights into the real estate sector.

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How Are Landlords Budgeting for Eco-Upgrades?

The minimum EPC rating a property must hit to be legally let to tenants is currently E.

Government proposals to raise the minimum to C or above for existing residential rentals by 2028 were scrapped in September last year. Following this government U-turn, a quarter of respondents have cut the amount they planned to invest in eco upgrades. However, 44% have responded that they are continuing their original investment plans.

The average annual budgets of investors put aside for sustainable investments for commercial and residential portfolios have even seen an increase year-on-year of over 20%. The reported average in the 2023 report was £106,222, but the latest report revealed a 2024 budget of £128,000 as part of the average investor’s buy-to-let business plan.

Lisa Robey, Milton Keynes Branch Manager at Handelsbanken, commented: “Our customers are seeing tremendous demand from tenants for sustainable properties that can help reduce both their environmental footprint and their utility bills. It’s important to note that landlords who invest in green features are not only meeting this demand but also future-proofing their assets.”

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How Do Landlords Feel About the Sustainability Drive?

The Handelsbanken report also reveals that landlords are embracing the emphasis on sustainable properties, with 72% responding that they would welcome new rules raising the minimum EPC ratings needed for commercial and residential lettings to an A rating – the highest possible level.

Richard Winder, UK Head of Sustainability at Handelsbanken, said: “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. Locking in value, reducing operating costs, and attracting and retaining tenants are all front of mind for investors – research suggests that assets with the highest EPC ratings enjoy considerably longer lease lengths.”

Find out more about UK property investment with our latest buy-to-let area guides, covering topics such as Chelmsford investment properties and available investment property in Eastbourne.

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