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.