Key Highlights

Sustainability has come to the forefront of a lot of industries. One such industry is the property investment industry, owing to a drive-in environmental awareness, regulatory changes, and changing priorities from investors. However, a large part of this drive towards sustainability comes from a surprising sector: renters. A report showed that 98% of renters would prefer living in a green home, with just over half (52%) saying they would be willing to pay an extra 10% per month to live in a home they were satisfied was environmentally friendly.

The trend is not only reshaping how properties are developed but also influencing long-term investment strategies. This article explores the key sustainability trends in new build property investments in the UK, examining the factors that are shaping the future of the market. 

Sustainability Drivers in Property Investment

Environmental, Social, and Governance (ESG)

ESG has moved away from being a buzzword in boardrooms into actionable practices. Investors now understand that sustainable practices are important for long-term value. This is especially true because of climate risks and new rules. There is also a growing demand from tenants for green properties. Last year it was reported that 94% of investors highlighted the importance of incorporating ESG data into their investment models. Since then, more than 80% of large investors have integrated ESG data across all aspects of their investment lifecycle.

Of course, this has also translated into off-plan property. ESG initiatives have shaped how developers design and build new build houses and flats. Sustainable technology and features have been incorporated into new designs, such as rain/grey water recycling, energy efficiency, more robust insulation, and more.

Green Tech

Energy efficiency is the crux of hitting environmental and sustainability targets. The best way to do so is by implementing greener technologies. The UK government’s goal of achieving net-zero carbon emissions by 2050 has led to stricter building regulations, especially regarding the energy performance of new homes. Off-plan developments have the advantage of being able to incorporate cutting-edge green technologies from the outset, reducing the need for expensive refitting later on.

New build properties typically have better Energy Performance Certificate (EPC) ratings than older homes, which makes them more attractive to investors and buyers. Developers are also incorporating technologies like heat pumps, solar panels, and rainwater recycling systems to enhance the sustainability credentials of new projects.

Environmental Building Certifications

Green development and building certifications such as BREEAM (Building Research Establishment Environmental Assessment Method) and LEED (Leadership in Energy and Environmental Design) have become important in the UK. BREEAM is a UK company that assesses the sustainability of buildings and was one of the first organisations to do so. LEED was an initiative developed in the USA but is now used globally as a benchmark for meeting sustainability targets.

These certifications provide assurance to investors that properties meet high standards of environmental performance. In turn, they help developers attract buyers who are keen to purchase properties that are good for the planet.

Governmental Regulations

 Government policies and regulations are a significant driver of sustainability in the property market. The UK government has introduced a range of measures aimed at improving the energy efficiency of homes, including grants and tax incentives for green building projects. These policies are particularly beneficial for off-plan developments, as they can take advantage of the latest technologies and building methods to meet or exceed regulatory requirements.

One of the most important regulations is the requirement for all rental properties to have an EPC rating of C or above by 2028. This has driven the demand for energy-efficient new builds, as older properties often need expensive upgrades in order to meet these standards.

How Does New Build Property Fit Into All Of This?

New build property really comes into its own here, as it is set to play a key role in the push for more sustainable housing. Equipped with modern amenities and more environmentally friendly features, they can be more energy efficient, encourage recycling, and meet new requirements for sustainability as outlined by the UK government.

Green Property Investment Opportunities

 At North Property Group, the planet, and ESG values are something we take seriously. We do our best to ensure environmental standards are met and that greener facilities have been incorporated into our homes going forward.

Below are some of our recent properties with green features that are currently available for investment.

Castle Irwell

Surrounded by greenery and nature, this high-specification development is a curated series of freehold houses in the Irwell area of Salford.  It is surrounded by plenty of natural surroundings and incorporates some eco-friendly aspects into its design. These newly built homes come with solar panels installed and an EPC A rating.

Beyond this, the development is exciting because it is in a much quieter, more residential area, secluded from Salford city centre. Salford, like Manchester, has seen exponential growth in recent years, including astronomical house prices. As the city expands and its population grows, it is expected that house price growth will be seen in the suburbs, making this an exciting opportunity with a lot of potential for investors.

To find out more about Castle Irwell, click here.

Red Bank Manchester 

Red Bank Manchester’s regeneration project is an ambitious project that seeks to create 15,000 new homes to meet the demand for quality living spaces in the UK’s fastest-growing city. Commitment to the environment can be found throughout the project. The old Viaduct building will be saved and repurposed, turning into a space for retail and recreation. The project focuses on creating sustainable new residential spaces, providing strong transport links, green public spaces, and community facilities.

The aim is to create a low-carbon neighbourhood, with a target set for Net Zero Carbon during development and construction. Green spaces alongside the river valley will remain and be elevated, creating natural spaces for residents to enjoy. Key amenities and facilities are slated to be within a 15-minute walk, eliminating the need to drive. Safe routes for cycling have also been included in plans.

To find out more about Red Bank, click our project page here.

Summary

North Property Group is a property investment agency offering a full end-to-end lettings service. We have a core focus on UK off-plan property and are keen on ensuring that our future properties meet environmental guidelines.

We have plenty of quality, high-specification homes across England that meet the EPC rating requirements, offering unbeatable ROI and a unique investment opportunity. What’s more, this doesn’t come with ground rent and appreciates in value much more than a leasehold property. Book a free consultation with us to find your next opportunity in the UK real estate and UK off-plan property industry.