Tenants in the UK seem to be increasingly favouring properties with sustainable features, according to a sector investment report.

The Handelsbanken annual Property Investor Report, based on exclusive insights from UK property investors with an average of 35 properties each, revealed that 95% of investors had tenants asking for sustainable features such as heat pumps, solar generation or EV chargers – with over a quarter (28%) requesting the latter, in the past 12 months(1).

And 3 in 5 tenants (58%) requested properties with an Energy Performance Certificate (EPC) rating of C. Even more stark, this figures rose to 88% of tenants in London, perhaps reflecting the burden of high energy costs.

Lisa Robey, Milton Keynes Branch Manager at Handelsbanken said: "Our customers are seeing tremendous demand from tenants for sustainable properties that can help reduce both their environmental footprint and their utility bills.”

She also advised: “It’s important to note that landlords who invest in green features are not only meeting this demand, but also future-proofing their assets."

Richard Winder, UK Head of Sustainability at Handelsbanken said: “Property investors are clearly recognising the long-term value of maximising energy efficiency across their portfolios, and are eager to meet the highest sustainability standards to capitalise on the commercial benefits. Locking in value, reducing operating costs, and attracting and retaining tenants are all front of mind for investors – research suggests that assets with the highest EPC ratings enjoy considerably longer lease lengths.”

EPC regulations

Regulations in England require all residential and commercial rental properties to have an EPC rating of E or above before being let to tenants. Last year, plans to raise the minimum EPC rating to C for existing residential rentals by 2028 were scrapped.

The report advises that, following this announcement, a quarter of respondents cut the amount they planned to invest, a substantial proportion (44%) are continuing with their original investment plans.

However, the current government has signalled that it plans to raise the standard to EPC minimum C by 2030(2).

The report also highlights that landlords would want further changes from the government, with 72% of respondents advocating new rules that raise the minimum EPC rating to A for commercial and residential lettings.

There has been an increase of more than 20% in average value of annual budgets earmarked for sustainable investments across commercial and residential portfolios from £106,222 in the 2023 report, to £128,000 this year (2025).

The bank says it is also seeing an increased appetite from investors on either developing or acquiring properties with better EPC ratings based on the green financing initiatives offered by banks discounting loan margins.

Help with EPCs

SaveMoneyCutCarbon can help with EPC reporting and compliance by providing energy audits, identifying areas for improvement, and recommending solutions to enhance energy efficiency and meet regulatory standards. 

It would assess a building’s current EPC level and determine, if possible, how to improve it. This is particularly important for buildings that have a target to improve their EPC by a certain date.

The company offers services like energy and water audits, Savings Opportunities Reports), and even project implementation to help clients improve their EPC ratings. 

The Savings Opportunities Report Tool is the company’s unique technology service that provides detailed recommendations for enhancing energy efficiency and improving the EPC rating.

SaveMoneyCutCarbon can advise where improvements can be made to improve an EPC rating – If there is no valid commercial EPC or it is rated F or worse and the property lease is due for renewal then action is required to implement energy improvements to the property.

If the EPC is rated as an E and will still be valid at the time of the next lease renewal then there is no immediate need to address. However, from April 2023 all leased properties with a valid EPC must have a rating of E or better. Commercial EPCs are valid for 10 years from when issued.

A SORT report would outline practical steps to improve EPC ratings, such as upgrading lighting to LED, installing insulation, or updating heating controls, as well as providing a priorities roadmap based on impact and potential payback periods. 

The company can also assist with the design, supply, installation, and maintenance of energy-saving projects. 

As well as EPC procurement, helping clients obtain or renew EPC certificates. It can assist in ongoing compliance with energy regulations and provide support for managing EPCs and related data. 

Allied with this, SaveMoneyCutCarbon can also help with ESG (Environmental, Social, and Governance) reporting, which often includes energy consumption and carbon emissions data, as well as help with general compliance, advising on which energy regulations apply, such as the  MEES (Minimum Energy Efficiency Standards) and ESOS (Energy Savings Opportunity Scheme). 

By leveraging SaveMoneyCutCarbon's expertise, businesses can not only improve their EPC ratings but also reduce their energy consumption, lower costs, and demonstrate their commitment to sustainability. 

Bibliography

1 ‘Tenant demand for sustainable properties soars’ (Accessed June 2025) https://www.handelsbanken.co.uk/en/about-us/press-and-media/news/tenant-demand-soars

2 ‘Labour affirms commitment to increasing minimum energy performance targets for tenanted properties’ (Accessed June 2025) https://lcf.co.uk/media-centre/blogs/labour-affirms-commitment-to-increasing-minimum-epc-rating/