The research found that 82% of landlords, investors and brokers who participated in the study said that environmental friendliness and energy efficiency were in the top three considerations, along with rental yield.
Andy Button, head of investment finance at Hodge (pictured above), said: “The BTL market is particularly buoyant right now, with demand continuing to grow throughout the pandemic, and it’s interesting to see how the priorities for landlords are changing when looking to add to their portfolio.
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“While rental yield and potential for capital growth are, of course, top priorities, our research reflects a change in mood of the market, where sustainability and green credentials are becoming ever more important.”
Quoting a recent Savills report, which revealed that 26% of people consider the environment the most important issue facing the country, Andy stated that landlords and estate agents have to provide choice in sustainable housing options to cater for tenants’ preference for greener homes.
“It’s clear that sustainability will feature more and more in new-build development design,” he commented.
“More stringent compliance to EPC and an investment strategy more closely aligned to sustainability could actually improve cash flows in the longer term, as tenants might be prepared to pay higher rents in exchange for lower utility costs.”
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