Tenants will pay for greener rental properties

The Handelsbanken Property Investor Report 2025 highlights a growing trend where tenants are driving demand for greener rental properties. Key findings include:

  • 92% of UK property investors believe tenants are willing to pay more for sustainable homes and commercial spaces.
  • 77% report increased demand for features like heat pumps, solar panels, and EV charging points.
  • Tenant priorities are reshaping the rental market, offering landlords opportunities to future-proof their portfolios.
  • 54% of investors plan to expand their portfolios in the next year.
  • 80% expect portfolio values to rise, despite market uncertainty.
  • EPC reforms are seen positively by 36% of investors, with 56% reporting no negative impact.
  • Tenant requests for green features are now mainstream, with:
    • 77% of landlords noting interest in sustainability upgrades.
    • 57% seeing demand for EV charging points.
    • 47% reporting requests for higher EPC ratings (C or above).

Experts suggest that sustainability is no longer optional but essential for property investors, as regulations tighten and climate concerns grow.

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