On EPC C specifically, cited by 66% of tenants as their most requested feature, Winder said it now functions as a proxy for quality as much as genuine understanding of energy performance. “EPC C is the understood standard for the time being, and that gives them comfort,” he said, adding that corporate tenants are increasingly looking further ahead to EPC B.
Is delaying retrofit work a false economy?
The report warns postponing retrofits could prove costly, and Winder set out the financial logic. “The premium is already there in the marketplace,” he said. “If you put off activity until you really have to do it, you also have to consider supply and demand when it comes to the people and materials needed to do the work. Human nature means a lot of people leave things until the last minute, and that is likely to drive prices up.”
The point carries added weight given the government’s Warm Homes Plan, published in January, which set out the minimum energy efficiency standard for landlords, confirming private rented homes in England and Wales must reach the equivalent of an EPC C by October 2030, backed by a cost cap of up to £10,000 per property.
Why is green demand strong outside London?
The regional data surprised even Winder at first glance. Investors with properties in Wales (79%), Scotland (78%) and the West Midlands (76%) were among the most likely to say renters would pay more for greener homes, while demand for stronger EPC ratings was most pronounced in the North East (80%) and South West (79%). It echoes a wider pattern of buy-to-let activity concentrating in northern England as landlord portfolios professionalise.
“It is really interesting,” Winder said. “On the one hand, it still does surprise me, and yet I question why, because we get out around the country. Handelsbanken has branches all across Great Britain, and we hold seminars that are packed with landlords and property investors who want to talk about these issues.”