This piece by Caroline Marshall-Roberts, chief executive and founder of BuyAssociation
New research has revealed that 92% of investors say tenants will pay more for greener homes.
In a market where sustainability is playing an increasingly central role, it is becoming more than just a buzzword. Green features are now seen as a smart investment for property owners looking to strengthen their rental offering and attract the next generation of tenants.
Caroline Marshall-Roberts, chief executive and founder of BuyAssociation, explains why investing in greener homes is not only a smart move in 2025, but also a commercial opportunity for landlords
“Over the past few years, we’ve seen a big increase in demand for greener living. 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.”
She outlines some of the key benefits of investing in sustainable rental properties.
Attracting higher-quality, long-term tenants – One of the biggest benefits of investing in green upgrades is the type of tenant it attracts. Properties with sustainable features tend to appeal to renters who are environmentally conscious and financially stable.
These are often young professionals or families looking for a comfortable and efficient place to live.
These tenants are also more likely to stay longer, which means fewer void periods and lower management costs. A stable rental relationship also means the tenant is more likely to look after the property and reduce the risk of costly damage.
Justifying higher rent – Greener homes can also make it easier for landlords to justify higher rents, especially if tenants feel they are getting value back in the form of lower energy bills. Features like solar panels, insulation, or car charging points make this possible.
Landlords can achieve higher rental income by offering properties with lower utility costs. Tenants are often willing to pay a slightly higher rent if they anticipate significant savings on their monthly bills.
Protecting against future costs – As we get closer to key net-zero deadlines, new policies around building standards and environmental performance are becoming more common. Landlords who invest in green upgrades now can avoid the future costs of retrofitting or risk falling foul of regulations.
These upgrades may also help landlords access green finance options, making it easier to improve other areas of their portfolio while staying ahead of upcoming legal changes.
Lower maintenance bills – Many green features are built using durable, high-quality materials that are designed to last. This means day-to-day maintenance costs can often be lower. Some properties also include smart systems that can spot problems early. These can help landlords carry out smaller repairs before they turn into costly issues.
Standing out in a crowded market – With rising rental prices and energy costs, tenants are increasingly seeking value. Landlords providing eco-friendly features will gain a competitive advantage, particularly as many properties still lack these benefits. Green homes offer a genuine marketing advantage.
Caroline Marshall-Roberts is chief executive and founder of BuyAssociation
