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Tenants pay premium for green rentals, say 92% of property investors

New research shows that “more than nine in ten (92 %)” property investors believe tenants will happily pay extra for homes with greener features—a convincing nod to landlords weighing up energy-saving upgrades. Conducted across a cross-section of buy-to-let owners and portfolio landlords, the survey shows that environmental credentials are no longer a side issue but a competitive edge in today’s rental market.

Greener fit-outs attract loyal, low-risk tenants
Caroline Marshall-Roberts, chief executive and founder of BuyAssociation, has watched the shift first-hand. “Over the past few years, we’ve seen a big increase in demand for greener living,” she says. Rising electricity and gas prices, coupled with the government’s net-zero timetable, mean many renters—particularly young professionals—now weigh running costs as heavily as rent. Properties with solar panels, high-grade insulation or EV charge points “tend to be rented out faster, leading to improved returns and reduced vacancy periods,” Marshall-Roberts adds.

For Coventry accountant Luke Patel, who rents a newly refurbished EPC-B terrace, the maths is simple: “I pay £35 a month more than my previous flat, but my winter bills were half what they used to be—so I’m still winning.” Landlords report that tenants like Patel also stay put for longer, cutting costly turnover.

Future-proofing beats future penalties
Net-zero deadlines may feel distant, yet insulation quotas and minimum EPC standards are tightening each year. Landlords who retrofit now protect themselves from sudden, mandatory works later. “Landlords who invest in green upgrades now can avoid the future costs of retrofitting or risk falling foul of regulations,” Marshall-Roberts warns. Early adopters may also unlock discounted “green” mortgages and added borrowing capacity, cushioning broader portfolio upgrades.

Importantly, many eco-spec materials and smart-tech fixtures carry longer warranties and flag maintenance issues before they balloon—lowering running costs and freeing up capital for further acquisitions.

Premium rents offset the outlay
Critics sometimes baulk at the up-front bill for heat pumps, triple glazing or photovoltaic arrays. Yet the survey suggests tenants are pragmatic: they will exchange higher headline rent for predictable, lower monthly outgoings. Landlords, in turn, gain a marketing edge in an increasingly crowded marketplace where many older homes still leak energy.

Marshall-Roberts sums up the commercial logic: “In competitive markets, these properties tend to be rented out faster.” For landlords facing rising mortgage rates, quicker lets and fewer voids translate directly into stronger cash flow.

A decade ago “green” upgrades were a nice-to-have; in 2025 they look more like a passport to steady yields, tenant loyalty and regulatory peace of mind. With 92 % of investors already convinced the premium exists, the real question for landlords is not whether they can afford to go green—but whether they can afford not to.

 

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