We look at why going green can make ethical and business sense.
A growing number of property investors are coming around to the idea that ‘green’ homes are good.
This is great news for the environment as energy usage in homes accounts for 14% of total UK emissions1.
Given that there are 2.7 million landlords in the UK2, it’s clear that the private rental sector can play an important role in helping the planet.
But the case for going green isn’t just environmental; there are several reasons why it makes good business sense for landlords to embrace energy-efficient technology and design.
Here are five reasons why it can pay to go green.
1) It impresses tenants
Many tenants are passionate about sustainability – 42% take green considerations into account when searching for a new home3. If your property has green credentials, it’s more likely to stand out from the crowd, particularly if you’re trying to attract renters who are young professionals.
2) Lower bills
Features such as double or triple-glazing, insulation, smart meters, energy-saving light bulbs and solar panels mean lower energy bills. We’re yet to meet a tenant who doesn’t like saving money on gas and electricity.
3) Adds value
If you decide to sell the property, the green features you’ve invested in should add value. One study found that high-performance green homes sell for 3.5% more than their standard counterparts4.
Going green may save you money on your mortgage. Green buy-to-let mortgages, which give borrowers discounted rates when they make energy-efficient improvements, are becoming increasingly popular.
5) Change is coming
The government is considering bringing in tougher Energy Performance Certificate (EPC) rules. Rental properties may need an EPC rating of C by 2025 for new tenancies and 2028 for all tenancies. Work you do now on greening your property will put you in a good place if this policy is introduced. Also, you won’t get caught in the rush to adapt properties in time for this deadline.
Thanks for reading, and if you’d like more advice on ways to make your property more energy-efficient and increase its value in the process, contact us here at AVENUE Property.
1 Climate Change Committee
2 Ludlow Thompson
3 Simply Business
4 Law Depot