GREEN HOME PROPERTY FOR INVESTMENT IN THE MID OF GAS SHORTAGE CRISIS

Every business, including real estate, is prioritising sustainable practices. In an attempt to ‘rebuild greener’ after the pandemic, by 2050, the goal is to achieve net-zero carbon emissions. As a result, green investing and green home property continue to rise on the real estate agenda.

There’s no denying that today’s renters are more ecologically conscious than previous generations. Sustainability is a trending topic these days, and it extends to real estate too. Consequently, investors are taking note of the upsurge of interest in the green home property. Also, as the government announced their ‘Green Homes Grant’, it’s clear that investing in green home property is a prosperous investment opportunity.

What is a green home property?

Every aspect of the green home property is built with sustainability in mind. They prioritize green home materials without having to compromise on quality. These ‘green,’ ‘sustainable,’ or ‘green house’ properties are built with sustainable materials. They are also designed to produce a minimal amount of carbon emissions. As one-third of global CO2 emissions are linked to the real estate sector, it is clear that sustainability is an important factor that can improve the value of your investment.

Green home properties are not only sustainable but also practical. Outgoing costs are lowered thanks to the green materials they use. They have specific design features such as triple-glazed windows, solar panels, renewable heating, and rainwater harvesting that decrease emissions and lower the carbon footprint.

Why should landlords invest in ‘green’ rental properties?

Aside from doing your bit to help the environment, there are many additional reasons why a green home property is a great investment opportunity.

There are many benefits for landlords to invest in green housing. For a limited time, landlords can apply for the Green Homes Grant to help them save money on energy efficiency improvements. This will help landlords make their buy-to-lets more appealing and add value to their properties. This could also in turn help improve the standards of the private rented sector.

As tenants are staying in their rental homes for longer, tenants are expecting more from their rental properties. Landlords who invest more in their properties and offer space that caters to their target tenant are seeing the most success. With environmental issues at the top of many people’s minds, green housing is appealing to a wide range of tenants.

Additionally, most of us have spent more time in our homes due to the successive COVID-19 lockdowns. Because of that, many of our household bills have increased. Landlords can now use eco-properties and energy efficiency improvements as selling points for tenants. This is likely to be especially appealing for tenants who will continue working from home post-Covid.

On top of that, green mortgages are growing in popularity and offering savings. The mortgages give borrowers special rates linked directly to the energy performance of their properties. This provides an added financial incentive for landlords and investors to focus on green credentials.

1. The demand is high

73% of millennials are willing to pay extra for a green home property, according to research by Nielsen. This is clear in buyer trends outside of real estate too. Millennial customers across the UK are paying more for everyday items that are cruelty-free, sustainable, or organic. This is because society is beginning to realize the importance of making sustainable choices. Demand is already high, and it will only get higher.

Aside from any environmental morals, green home properties are also more affordable in the long term. One of the most significant benefits of all eco-homes is the reduction in water and energy costs, thanks to high levels of energy efficiency. The installation of renewable energy systems massively reduces the cost of running your home. This is a huge selling point for green home properties.

 2. Long-term security

A green home property is an example of a property that will stand out. Therefore, investors can rest assured their money will achieve capital growth over time. It’s more important than ever to cater to tenants' needs, as demand continues to exceed supply. It’s clear that the younger generation, who make up the majority of the rental market, value sustainability. Therefore, providing the foundations of a prosperous investment.

Despite green home properties being more costly, they are of much higher quality. Investors commonly opt for a cheaper property for a higher ROI. However, there is value in choosing quality over cost. Newly built, green home properties will attract higher-paying tenants over time. Especially as demand continues to increase.

Green property improvements to reduce energy bills