Energy Efficiency: The Best Properties to Invest in

A Rise in Demand for Sustainability

In recent years there has been a surge in demand for sustainable properties. With growing awareness around energy efficiency and environmental impact, buyers and renters are prioritising homes that offer higher sustainability. 

To find evidence of this trend many reports and surveys were conducted, the results for a couple are as follows. A report conducted by Knight Frank revealed that over 60% of participants stated energy efficiency as their primary motivator for looking at newly built properties. 

Additionally, looking at the data collected by a survey from property business expert Handelsbanken, 92% of property investors in the UK have received requests for sustainable features from tenants in the past 12 months. 

Both of these demonstrate that properties with higher energy ratings are becoming increasingly sought after, therefore they are seen as a more attractive investment to benefit from the rising demand. 

How do Apartments Compare to Houses?

To take advantage of the evolving demand to live sustainably, investors need to understand what properties are the most sustainable and will attract the tenant demand. Data from the Office for National Statistics provides an insight into average EPC ratings for property types across the UK. 

Their findings revealed that apartments in England have the highest EPC rating, with an average score of 73, leaving them in band C. This is due to them being a smaller size and having internal shared walls minimising heat loss. In contrast, the properties that are on average the least energy-efficient are semi-detached houses. These properties hold an average score of only 65, sitting in band D. 

This research indicates that apartments consistently outperform houses in terms of sustainability. This offers an opportunity for investors to capitalise on the growing demand.  Investors who know this insight can secure a more sustainable apartment that will offer both immediate and long-term advantages. Including stronger rental yields, higher occupancy rates, and a more resilient asset in a competitive property market. 

1. Stay Ahead of Demand

As sustainability becomes an increasing priority for both tenants and buyers, properties that meet modern energy efficiency standards are increasingly sought after. By investing in properties that meet these demands, you’ll be in a position to attract tenants quickly and maintain high occupancy rates.

2. Long-Term Savings

Sustainable properties often come with significant long-term savings, both in terms of lower operational costs and fewer maintenance requirements. For investors, this translates into lower property management costs and potentially fewer repairs over time. Properties built with sustainability in mind tend to be more durable and require less upkeep.

3. Higher Rental Income

Energy-efficient properties can command higher rental rates, making them a more lucrative investment in the long term. Tenants are increasingly willing to pay a premium for properties that offer lower utility bills, improved comfort, and reduced environmental impact. For investors, this means the potential to generate higher rental income.