0:01 AM, 12th June 2025, About 7 months ago 9
Text Size
Categories:
A new wave of eco-conscious tenants is transforming the UK’s PRS, with 92% of landlords noting a willingness among renters to pay a premium for environmentally friendly homes, research reveals.
According to Handelsbanken’s Property Investor Report 2025, which surveyed 200 professional landlords and property investors, there’s a surge in demand for sustainable upgrades.
These include heat pumps, solar panels and electric vehicle (EV) charging points.
It says that the rental landscape is evolving rapidly, driven by tenant priorities and impending regulatory changes.
Richard Winder, the head of sustainability at Handelsbanken, said: “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.”
He added: “As regulations tighten and our worsening climate moves centre stage, the clamour for more sustainable and resilient buildings will only grow.”
The report reveals that 77% of landlords say renters are actively seeking properties with green features, while 57% note specific requests for EV charging stations.
Also, 47% of investors say tenants are pushing for higher Energy Performance Certificate (EPC) ratings of C or above, reflecting a growing focus on energy efficiency.
And, despite challenges like inflation, geopolitical tensions and regulatory shifts such as EPC reforms and the Renters’ Rights Bill, the property sector remains optimistic.
The report reveals that 54% of investors plan to expand their portfolios in the next year, and 80% expect property values to increase.
Notably, 36% view proposed EPC reforms positively, while 56% see no adverse impact, signalling confidence in the market’s resilience.
James Sproule, the bank’s UK chief economist, said: “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.”
He adds: “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.”
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
northern landlord
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since March 2022 - Comments: 352
10:58 AM, 11th June 2025, About 7 months ago
This is just to attempt to encourage landlords to pay out thousands to upgrade property. I can’t see any of my tenants wanting to pay a few hundred a month to save themselves a few hundred a year. Wealthy tenants who are probably renting for temporary convenience might pay extra but I don’t see many stockbrokers wanting to rent in the areas where the vast majority of landlords have property.
The_Maluka
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since May 2015 - Comments: 2128 - Articles: 1
11:49 AM, 11th June 2025, About 7 months ago
First, the government must decide how Energy Performance is assessed, only then can landlords react in a measured fashion.
Paul Essex
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since June 2019 - Comments: 691
12:48 PM, 11th June 2025, About 7 months ago
Tenants will pay more for greener housing is a statement of fact.
Once EPC C comes in, paying less for a less efficient house will no longer be an option.
But the increased rent will be much more than the tiny savings in energy costs.
Suspicious Steve
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since May 2025 - Comments: 58
16:17 PM, 11th June 2025, About 7 months ago
Given Red Milliband has allowed energy prices to balloon far in excess of any savings I don’t think tenants have any additional money to pay for the extra rent they will need to be charged to cover the huge investment to save a few pennies in energy.
In the meantime Labour expects tenants in council houses to endure cold, damp conditions – often with EPCs worse than E. It is only fair that we force the government to spend £45 BILLION upgrading their dilapidated housing stock to EPC #C like private tenants will enjoy.
Sign my petition to force them to upgrade
https://petition.parliament.uk/petitions/718910
Suspicious Steve
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since May 2025 - Comments: 58
16:19 PM, 11th June 2025, About 7 months ago
Reply to the comment left by Paul Essex at 11/06/2025 – 12:48If it’s a listed building it potentially can be exempt.
And of course council housing and social housing dont need to meet C. In fact they dont need to meet EPC of E….
As it currently stands you can rent your house to the council and you longer need to worry about EPCs. Maybe that’s Angela’s master plan to get all this additional social housing.
northern landlord
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since March 2022 - Comments: 352
17:17 PM, 11th June 2025, About 7 months ago
Not only do social and council houses not have a minimum EPC rating, I understand they are also not legally required to have EICR certificates, having certification is suggested as “good practice” with no obligation to do it.
Suspicious Steve
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since May 2025 - Comments: 58
14:33 PM, 12th June 2025, About 7 months ago
Reply to the comment left by northern landlord at 11/06/2025 – 17:17
If council houses don’t have gas safety certificates it’s a mere slap on the wrist.
If the Regulator of Social Housing issues improvement orders against councils, no-one loses their job, is fined or faces a criminal record.
For the few councils that disclose it, the total annual spend is £13 million per year on legal fees defending dilapidation claims….the real number is probably £80m+….says it all.
Two-tier.
Reluctant Landlord
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since September 2018 - Comments: 3398 - Articles: 5
15:23 PM, 12th June 2025, About 7 months ago
Reply to the comment left by Suspicious Steve at 11/06/2025 – 16:19
well she certainly isn’t going to be building it at the rate required that’s for sure.
I secretly wonder if that’s the plan…the RRB hits and a lot of LL’s give their houses over to Councils to escape from the legislation demands?
Also another way for the LL to avoid the cash cow that is selective licencing…
Reluctant Landlord
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since September 2018 - Comments: 3398 - Articles: 5
15:24 PM, 12th June 2025, About 7 months ago
Reply to the comment left by Suspicious Steve at 11/06/2025 – 16:17
ive pushed your petition. Its going up in signatures!