Key Highlights

People are becoming more environmentally conscious and this is reflected in some of the larger decisions they make. Everything from food shopping to living arrangements, people are making more eco-friendly choices to do their bit for the planet.

This desire is often reflected in the choices renters make when it comes to looking for a viable property to live in. Renters are now looking for green aspects of potential homes, such as if the property has smart energy metres, is energy efficient, is well insulated, and if it is water efficient. 

Not only are these choices made to be more earth-conscious, but renters are also keen on these aspects as they are more cost and energy-effective. Rising energy costs have become a pain point for a lot of renters, so they tend to search for apartments and houses that won’t run huge electrical and gas bills in the winter.

For potential and established property investors, this is a good thing to keep in mind when investing in buy-to-let properties. Investors and developers alike should think of ways to achieve real estate sustainability solutions.

Below are some sustainability trends that are expected to continue or rise in 2024:

Sustainability Trends in UK Real Estate

Green Leases

Green leases are leases that specify, alongside standard clauses, commitments for both tenant and landlord to make the property more eco-friendly. This includes clauses surrounding waste, energy, water efficiency, travel, and even sustainability materials and best practices. While these are more often seen in commercial property lettings, they are starting to be adopted for some residential properties as well.

Improved Air Quality

Newly built residential buildings are often adopted as part of wider regeneration development schemes. An example of this would be Manchester’s Red Bank neighbourhood which is a new development project that will see a blend of residential and commercial buildings being built to revitalise the area.

One of the biggest takeaways from Manchester’s Red Bank regeneration scheme is that it will be partially pedestrianised. It will also be home to several green spaces and have strong transport links. This is done with the environment in mind and to also help improve air quality in the area. Fewer cars naturally means less emissions.

These approaches to new developments are not just limited to Manchester, but are happening all across the UK. These multi-use spaces that focus on reducing cars and pedestrianising the area will result in significantly improved air quality for the area.

A notable example is London, with the introduction of the Low Emissions Zone, which covers most of London’s city centre. It has made significant advances in reducing carbon emissions in the area. With such positive results, this year the UK is expected to have three new low-emission cities.

Increased Biodiversity

More and more developments are striving to increase biodiversity and encourage local flora and fauna to flourish. One of the main ways developers are doing this is to introduce green spaces and plants into their developments, encouraging local wildlife.

The Taskforce for Nature Related Financial Disclosures (TNFD) reporting is a framework companies from all backgrounds can use. It has created a set of recommendations and best practices that businesses can use to assess, report, and act on nature-related aspects. This can include potential impacts, risks, and opportunities. UK developers can use these guidelines to be able to meet the Biodiversity Net Gain requirements.

Circular Economy Methods

The circular economy is a framework that focuses on the reuse and regeneration of materials and products to achieve a more eco-friendly outcome. This framework was designed to tackle issues surrounding climate change, pollution, biodiversity loss, and waste. Employing circular economy principles is one of the most successful methods of reducing our impact on the planet.

For the real estate industry, circular economy principles can be applied. These include circulating and recycling products and materials, designing earth-conscious buildings with no or little pollution, reducing pollution during construction, and looking after the environment. Overall, developers and investors should be aware of the environmental impact real estate can have and be aware of steps to combat this.

Carbon Neutrality

More and more businesses are taking the pledge to be carbon neutral – this means they promise to reduce their carbon usage until it is zero or find a way of offsetting their carbon emissions.

While it might seem that making real estate and buy-to-let businesses carbon-neutral is an almost impossible task, there are ways to achieve it. Off-setting carbon emissions can include investing in green ventures, planting trees, and supporting charities that work towards reducing carbon.

This has become more pressing in recent years, as the world is slowly waking up to the damage caused. The Paris Agreement, an initiative spearheaded by the UN Climate Change Conference in 2015, outlined that the world will need to reach neutral carbon production by 2050. All countries involved must adhere to strict management and reporting to prove they’ve met this requirement. Since then, more companies have been searching for ways to cut their carbon emissions or offset them.

Sustainability And Off-Plan Properties

A great way to invest in sustainable buy-to-let properties is to invest in off-plan properties. Off-plan property investment means that investors purchase properties that have not yet been completed. These properties are often in the early stages of development, and planning, or are yet to be physically finished building.

Off-plan homes are often built to a higher, more eco-friendly, and sustainable standard. A lot of these new-build developments have sustainability as a key factor. New homes are being built with eco-friendly materials, have better insulation, and are more energy efficient. This saves heating and energy costs, making them attractive for tenants.

These new builds on average have a higher Energy Performance Certificate, with 85% of these developments having a rating of either A or B. This makes them far more energy efficient than the average home.

Summary

At North Property Group, we specialise in finding the best property investment opportunities across the UK. We have a deep and extensive knowledge of the country’s real estate market and can provide professional advice to help you maximise your investment. Book a free consultation with us today so we can help you unlock your investment potential.