Tenants are Requesting More Energy Efficient Properties

92% of Investors have Received Requests for Sustainable Features

Looking at the data found 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. The landlords in the survey were UK buy-to-let investors with an average of 35 properties each. 

Most commonly, tenants are asking for features such as heat pumps, solar generation, and EV chargers. The survey also found that over 50% of tenants have requested properties with an Energy Performance Certificate (EPC) rating of C or above. In London, this rises to 88% for tenants, likely due to the high energy costs and constraints on affordability.

85% of New-Builds Achieve A or B EPC Rating

​​New-build properties generally receive higher EPC ratings. These ratings indicate a building’s energy efficiency, with A being the most efficient. The rating is determined by assessing various features of the property, including roofs, walls, insulation, windows, heating systems, lighting, and any renewable energy solutions.

According to Zoopla’s report, 85% of new-builds achieve an EPC rating of A or B, whereas less than 5% of older properties are able to reach this rating. This is because new builds have considered sustainability from the start when the design and construction process began. Even the materials and building techniques are chosen to be more energy efficient, such as insulating the building to retain heat and use less energy. Most furnished new builds also come with A+ rated appliances, which reduces the amount of energy used by dishwashers, washing machines, and other household appliances. 

How Are Landlords Budgeting for Sustainable Investing?

The minimum EPC rating a property must hit to be legally let to tenants is currently E, however, Labour has said previously that they will reintroduce the legislation that all rental properties would need to achieve a C or above in their EPCs by 2030. Many landlords had already been making improvements to the energy efficiency of their properties. 

This included upgrading existing properties, such as by fitting double-glazing or draught-proofing rooms. It also involved selling off older, less energy-efficient assets and in some individuals investing in new-build homes

The average yearly budget for investors to put aside for sustainable investments has seen an increase year-on-year of over 20%. The average budget in 2023 was around £106,000, but the 2024 report stated the average budget is now £128,000. These budgets are usually part of an investor’s buy-to-let business plan.