Tenants are driving the push towards greener and more sustainable rental properties.

That’s the claims from Handelsbanken’s Property Investor Report 2025, which says 92% of UK property investors believe tenants are willing to pay more for greener homes and commercial premises, with 77% reporting a surge in demand for sustainable features like heat pumps, solar panels, and electric vehicle charging points.

The report, based on a survey of 200 large portfolio professional landlords and property investors across the UK, reveals how tenants’ priorities are reshaping the rental landscape, offering landlords a clear opportunity to future-proof their portfolios.

Richard Winder, head of sustainability at the bank, says: “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.”  

Other findings include:

• 54% of property investors plan to expand their portfolios over the next 12 months
• 80% expect their portfolio values to rise, despite market uncertainty
• 36% say proposed EPC reforms make them more positive about the market, while 56% see no negative impact

The report reveals that in tenant conversations, requests for green features are no longer niche:

• 77% of landlords report tenant interest in heat pumps, solar generation, and other sustainability upgrades
• 57% say tenants are asking for EV charging points
• 47% cite demand for higher Energy Performance Certificate (EPC) ratings (C or above)

James Sproule, UK chief economist at the bank, comments:“For years, green standards were seen as a regulatory headache. But our research shows that investors increasingly see them as an opportunity to add value. The message is clear, if you’re investing in property, sustainability isn’t optional anymore, it’s essential.”