As some industries rethink their green commitments, tenants are driving the sustainable property agenda forward, Handlesbanken reveals.
The research from Handlesbanken shows that 92% of UK property investors believe tenants are willing to pay more for greener homes and commercial premises.
In addition, 77% of landlords report tenant interest in heat pumps, solar generation, and other sustainability upgrades, while 57% say tenants are asking for EV charging points and 47% cite demand for higher energy performance certificate (EPC) ratings of C or above.
It also found that 54% of property investors plan to expand their portfolios over the next 12 months, while 80% expect their portfolio values to rise, despite market uncertainty.
Of those surveyed, 36% say proposed EPC reforms make them more positive about the market, while 56% see no negative impact
The report is based on a survey of 200 large portfolio professional landlords and property investors across the UK.
Handelsbanken head of sustainability Richard Winder says: “We’ve seen landlords’ 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’s financial value, while cutting long-term operating costs.”
“As regulations tighten and our worsening climate moves centre stage, the clamour for more sustainable and resilient buildings will only grow.”
Handlesbanken UK chief economist James Sproule adds: “Sustainable properties aren’t just good for the planet, they’re 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’t risk being left behind.”
The Nordic bank says the shift in tenant priorities comes as many large corporations are rethinking their sustainability targets, caught between rising costs and uncertain market conditions.
However, the report suggests that for property investors sustainability is seen as a growth opportunity.
Sproule comments: “For years, green standards were seen as a regulatory headache. But our research shows that investors increasingly see them as an opportunity to add value. The message is clear, if you’re investing in property, sustainability isn’t optional anymore, it’s essential.”
Last week, the energy department said housebuilders will be required to fit solar panels to the “vast majority” of new homes in England in a bid to cut energy bills.
The energy department will publish its Future Homes Standard paper in the autumn, but has confirmed that “solar panels will be included, leading to installation on the vast majority of new build homes”
