The minimum EPC rating a property must hit to be legally let to tenants is currently E.

Government proposals to raise the minimum to C or above for existing residential rentals by 2028 were scrapped in September last year. Following this government U-turn, a quarter of respondents have cut the amount they planned to invest in eco upgrades. However, 44% have responded that they are continuing their original investment plans.

The average annual budgets of investors put aside for sustainable investments for commercial and residential portfolios have even seen an increase year-on-year of over 20%. The reported average in the 2023 report was £106,222, but the latest report revealed a 2024 budget of £128,000 as part of the average investor’s buy-to-let business plan.

Lisa Robey, Milton Keynes Branch Manager at Handelsbanken, commented: “Our customers are seeing tremendous demand from tenants for sustainable properties that can help reduce both their environmental footprint and their utility bills. It’s important to note that landlords who invest in green features are not only meeting this demand but also future-proofing their assets.”

Further Reading: Learn what makes a good buy-to-let investment or how to invest £100k in property with our investment guides.



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