"With the cost of living rising, tenants are thinking more carefully about their bills. This is especially true for those on lower incomes or trying to save for a deposit. In many cases, paying a bit more for green features is worth it, as the long-term savings on utilities can be substantial"
- Caroline Marshall-Roberts - BuyAssociation
More than nine in ten property investors believe that tenants are willing to pay more for energy-efficient homes, according to new research highlighting the growing appeal of green features in rental properties.
With sustainability becoming an increasingly important part of housing policy and consumer preference, green upgrades are now widely viewed as a strategic investment. Property owners are beginning to see these features not only as a way to cut emissions but also as a commercial advantage.
Caroline Marshall-Roberts, chief executive and founder of BuyAssociation, explained why greener properties are attracting more attention from both landlords and tenants in 2025.
“Over the past few years, we’ve seen a big increase in demand for greener living,” said Marshall-Roberts. “This is partly due to the government’s net-zero push, but also because energy bills have gone through the roof.
“With the cost of living rising, tenants are thinking more carefully about their bills. This is especially true for those on lower incomes or trying to save for a deposit. In many cases, paying a bit more for green features is worth it, as the long-term savings on utilities can be substantial."
“Properties with energy-saving features are advantageous for landlords as well. In competitive markets, these properties tend to be rented out faster, leading to improved returns and reduced vacancy periods.”
Marshall-Roberts identified several key reasons landlords are choosing to invest in green upgrades:
Appealing to long-term, reliable tenants
Sustainable features often attract tenants who are financially stable and environmentally conscious. These renters, who are frequently young professionals or families, are typically looking for efficient, comfortable homes and are more likely to remain in the property for longer periods.
Fewer tenancy changes mean lower management costs and a reduced likelihood of costly property damage. According to Marshall-Roberts, stable tenant relationships also contribute to better upkeep, which benefits landlords in the long term.
Higher rental yields
Energy-efficient properties can command higher rents, particularly when tenants perceive a financial benefit from reduced utility costs. Features such as solar panels, upgraded insulation, or electric vehicle charging points can help offset monthly bills.
By offering cost-saving advantages, landlords are often able to justify modest rent increases. Many tenants are willing to pay a premium if it leads to meaningful monthly savings.
Futureproofing rental portfolios
As new regulations tied to the UK’s net-zero targets continue to emerge, landlords who invest in sustainable upgrades now may avoid the risk of falling behind future legal requirements.
Early adopters could also benefit from access to green finance products, helping them to fund additional improvements across their portfolios. This approach may prove more cost-effective than retrofitting homes at short notice to meet environmental standards.
Lower maintenance over time
Energy-efficient properties are often fitted with modern materials and systems designed for durability. In many cases, these features result in reduced day-to-day maintenance costs.
Some homes also include smart technologies capable of detecting faults early. This can help landlords address small issues before they escalate into more significant problems.
Standing out in a tight market
With rents and energy prices continuing to rise, tenants are increasingly focused on value. Properties offering eco-friendly features may stand out in a crowded market where many homes still lack basic energy efficiency improvements.
Marshall-Roberts noted that such features can serve as a unique selling point. For renters conscious of both environmental impact and household budgets, these properties offer an attractive solution.
