Landlords offloading their investment properties are inviting you to make the money they won’t

It may surprise you to know that more than a third of landlords began the year looking to downsize their portfolios – particularly given the surplus of demand according to BVA-BDRC research.

Much of this can be attributed to the incoming costs associated with renting a property these days. In an effort to keep global warming at no more than 1.5°C above pre-industrial levels – as called for in the Paris Agreement – the UK Government has pledged to reduce CO2 emissions by 45 percent by 2030, and onto carbon Net Zero by 2050.?

This also means proposed changes to EPC regulations, phased in from the end of this year for new tenancies, and all tenancies from 31 December 2028. These regulations mean landlords with properties rated D or below need to improve their energy efficiency or risk fines as high as ￡30,000.?

At its core, this energy efficiency legislation mandates the removal of fossil fuel combustion from our heating supply chain. And most of our homes are heated this way. But it also means better insulation, modern heating management systems and uprated doors and windows, such as double glazing.?

For landlords without the right knowledge and contacts, it may seem like they have a mountain to climb.?

Tenants, meanwhile, continue to seek properties free of damp and mould, that don’t cost the earth to keep warm. In essence, what they want is what the Government is asking landlords to provide. They are increasingly asking for greener properties too, with mod cons such as energy storage and EV charging now a regular question from my potential tenants.?

So with a third of landlords offloading their properties at a time when there is increased ability to make money, this presents an opportunity to others. Yes it requires additional short-term investment, but lower energy costs mean lower bills, and the balance can instead be turned into revenue – a necessity given the added cost of converting their property. And of course, lower bills reduce the probability of arrears.

It does, however, require a medium-to-long term view and a clear idea on how to bring down the cost of this investment while ensuring the longevity of the benefits.

This includes being aware of the following:

• Local and national grants exist for green energy solutions
• Work with an installer that takes a comprehensive approach to installing green solutions
• The quotation you get relies on the knowledge of the builder
• Know what qualifies as VAT-free
• Consider installing green solutions during other building work

Change is coming. But the undersupply of property and the surge of prospective tenants means that if you can stay the course, the prospect of renting energy-efficient property is more appealing than ever.?

The work we do at The Green Landlady could help you navigate 2025 in confidence. We offer consultancy for businesses and small groups, retrofit training and energy-efficiency. If you have an audience with an appetite for this information, please get in touch. ?

For more information on the topics discussed in this article, or to learn more about green property development, visit The Green Landlady website or get in touch here.