Tenant demand for inexperienced options like warmth pumps, photo voltaic panels, and EV chargers are surging, the Property Investor Report 2025 from Handelsbanken has revealed.
Some 77% of UK traders are seeing surging demand for these options, whereas 92% imagine tenants are prepared to pay extra for greener properties and business premises.
Richard Winder, head of sustainability at Handelsbanken plc, stated: “We’ve seen landlords’ considering mature over latest years in response to clear market alerts.
“Investing in sustainable options presents a uncommon alternative to woo good tenants, develop revenues and protect tomorrow’s monetary worth, whereas chopping 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.”
Regardless of property funding being tougher within the present atmosphere, for instance with the 5% stamp responsibility surcharge and buildup to the Renters’ Rights Invoice, many are nonetheless contemplating increasing their portfolio.
Over half (54%) of property traders plan to broaden their portfolios over the following 12 months, whereas 80% count on their portfolio values to rise.
James Sproule, UK chief economist at Handelsbanken, stated: “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 selections, going inexperienced is the sting that may make the distinction.
“Those that adapt will thrive; those that don’t danger being left behind.”
