Tenant demand for green features like heat pumps, solar panels, and EV chargers are surging, the Property Investor Report 2025 from Handelsbanken has revealed.
Some 77% of UK investors are seeing surging demand for these features, while 92% believe tenants are willing to pay more for greener homes and commercial premises.
Richard Winder, head of sustainability at Handelsbanken plc, 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.
“As regulations tighten and our worsening climate moves centre stage, the clamour for more sustainable and resilient buildings will only grow.”
Despite property investment being more challenging in the current environment, for example with the 5% stamp duty surcharge and buildup to the Renters’ Rights Bill, many are still considering expanding their portfolio.
Over half (54%) of property investors plan to expand their portfolios over the next 12 months, while 80% expect their portfolio values to rise.
James Sproule, UK chief economist at Handelsbanken, 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.”