How will property ride the green revolution?

12th October 2020

By Will Leyland

At the beginning of the month, speaking to the Conservative party conference, PM Boris Johnson pledged £160 million to create enough new wind farms to power every home in the UK by 2030.

By any definition that’s a pretty ambitious pledge to make during a time when the UK is experiencing one of the most pronounced, if perhaps short-term, recessions in modern history. But then, one could argue, big problems call for big solutions.

The PM spoke at length about his plans for a green recovery which he hopes will create thousands of jobs and brand-new industries for people to re-train into. The chancellor, Rishi Sunak, somewhat infamously now, encouraged out of work musicians and performers to retrain into new jobs and the party appears to be hoping that green jobs will provide the vehicle for such a scheme.

That’s all well and good within wind energy, but what could a green revolution look like for property development and investment? How could the developments of the future help to provide a cleaner environment for our children?

Tomorrow’s tenants

For property investors, one key thing to think about when considering a future proof portfolio is who are likely to be the customers and tenants of the future?

We already know that ‘generation rent’ is set to grow further in the next decade or so, but are their priorities set to remain the same?

It would probably be more accurate to say that their priorities won’t change as such, but become more focused as the Millennial generation gives way to Gen-Z. According to research 73% of millennials are prepared to pay extra for sustainable products, so that’s more than likely to increase as demographics begin to change.

As Millennials make their way into middle age and their peak earning years, they’re likely to become the dominant (more so) customer base for landlords and investors, whilst their younger counterparts begin their journey through their career looking for rental property as well.

Sustainable Developments

But what does a green development look like? Well it can mean many different things but a good place to start would be energy efficiency ratings. These are achieved with eco-friendly energy sources, heating and glazing.

Developments that are well insulated and also well aired are much better at using energy more sparingly and as such leaving a lesser carbon footprint along the way.

With UK property becoming ever more popular, and certainly within the major UK cities, this will become more of a focus.

Yields, rental growth and capital appreciation are attracting more investors than ever into the sector and this has meant more competition for customers and tenants than ever. Thankfully there’s more demand than ever, but for those wanting to attract the best tenants it’s worth considering their priorities in the years to come.

Are you looking to invest in your next buy to let property? Click here to see our latest investment opportunities!

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How will property ride the green revolution?

12 October 2020

At the beginning of the month, speaking to the Conservative party conference, PM Boris Johnson pledged £160 million to create enough new wind farms to power every home in the UK by 2030.

By any definition that’s a pretty ambitious pledge to make during a time when the UK is experiencing one of the most pronounced, if perhaps short-term, recessions in modern history. But then, one could argue, big problems call for big solutions.

The PM spoke at length about his plans for a green recovery which he hopes will create thousands of jobs and brand-new industries for people to re-train into. The chancellor, Rishi Sunak, somewhat infamously now, encouraged out of work musicians and performers to retrain into new jobs and the party appears to be hoping that green jobs will provide the vehicle for such a scheme.

That’s all well and good within wind energy, but what could a green revolution look like for property development and investment? How could the developments of the future help to provide a cleaner environment for our children?

Tomorrow’s tenants

For property investors, one key thing to think about when considering a future proof portfolio is who are likely to be the customers and tenants of the future?

We already know that ‘generation rent’ is set to grow further in the next decade or so, but are their priorities set to remain the same?

It would probably be more accurate to say that their priorities won’t change as such, but become more focused as the Millennial generation gives way to Gen-Z. According to research 73% of millennials are prepared to pay extra for sustainable products, so that’s more than likely to increase as demographics begin to change.

As Millennials make their way into middle age and their peak earning years, they’re likely to become the dominant (more so) customer base for landlords and investors, whilst their younger counterparts begin their journey through their career looking for rental property as well.

Sustainable Developments

But what does a green development look like? Well it can mean many different things but a good place to start would be energy efficiency ratings. These are achieved with eco-friendly energy sources, heating and glazing.

Developments that are well insulated and also well aired are much better at using energy more sparingly and as such leaving a lesser carbon footprint along the way.

With UK property becoming ever more popular, and certainly within the major UK cities, this will become more of a focus.

Yields, rental growth and capital appreciation are attracting more investors than ever into the sector and this has meant more competition for customers and tenants than ever. Thankfully there’s more demand than ever, but for those wanting to attract the best tenants it’s worth considering their priorities in the years to come.

Are you looking to invest in your next buy to let property? Click here to see our latest investment opportunities!

Will Leyland

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