In accordance with new analysis from Handelsbanken’s Property Investor Report 2025, an amazing 92% of UK property traders imagine tenants are keen to pay extra for greener properties and industrial premises, with 77% reporting a surge in demand for sustainable options like warmth pumps, photo voltaic panels, and electrical car charging factors.
The report, based mostly on a survey of 200 giant portfolio skilled landlords and property traders throughout the UK, reveals how tenants’ priorities are reshaping the rental panorama, providing landlords a transparent alternative to future-proof their portfolios.
Richard Winder, head of sustainability at Handelsbanken, commented: “We’ve seen landlords’ considering mature over current years in response to clear market indicators. Investing in sustainable options gives a uncommon alternative to woo good tenants, develop revenues and protect tomorrow’s monetary worth, whereas reducing long-term working prices. As rules tighten and our worsening local weather strikes centre stage, the clamour for extra sustainable and resilient buildings will solely develop.”
The report’s findings come at a time of blended indicators for the property sector. Whereas geopolitical tensions, inflation, and regulatory shifts, like EPC reforms and the Renters’ Rights Invoice, pose challenges, investor sentiment stays remarkably resilient. Different findings embrace:
+ 54% of property traders plan to increase their portfolios over the following 12 months
+ 80% anticipate their portfolio values to rise, regardless of market uncertainty
+ 36% say proposed EPC reforms make them extra optimistic in regards to the market, whereas 56% see no adverse influence
This resilience is underpinned by a rising recognition that sustainability sells. The report reveals that in tenant conversations, requests for inexperienced options are not area of interest:
+ 77% of landlords report tenant curiosity in warmth pumps, photo voltaic technology, and different sustainability upgrades
+ 57% say tenants are asking for EV charging factors
+ 47% cite demand for larger Vitality Efficiency Certificates (EPC) rankings (C or above)
James Sproule, UK chief economist at Handelsbanken, commented: “Sustainable properties aren’t simply good for the planet, they’re good for enterprise. In a market the place competitors is fierce and tenants have decisions, going inexperienced is the sting that may make the distinction. Those that adapt will thrive; those that don’t threat being left behind.”
This shift in tenant priorities comes as many giant corporates are rethinking their sustainability targets, caught between rising prices and unsure market situations. But the Handelsbanken Property Investor Report 2025 means that, for property traders, the other is true: sustainability is a development alternative.
Sproule continued: “For years, inexperienced requirements have been seen as a regulatory headache. However our analysis exhibits that traders more and more see them as a chance so as to add worth. The message is evident, when you’re investing in property, sustainability isn’t elective anymore, it’s important.”
