The Rise of Energy Efficient and "Green" Homes in the U.K.

Gone are the days where low-carbon homes were only for the biggest investors and grandest homeowners. With up to 30,000 projects in the pipeline in the U.K., it’s safe to say that green homes, as well as energy efficient homes are becoming “a thing”.

First, let’s take a look at the difference between a green home, and an energy efficient home.

Green Homes

Also known as eco-friendly home, these are not necessarily energy efficient. It therefore also doesn’t mean that the operation of the home will lower your energy bill, unless of course it is “energy-efficient”. A green home just means that the home has been built from environmentally friendly materials. Building the home is done so with a minimalised impact on the environment.

 Energy Efficient Homes

These homes are built so that living in the home uses much less energy therefore minimising the environmental impact once the homes are finished being constructed, for decades to come. These will also lower your energy bill. They are not necessarily build out of materials that minimise environmental impact, but they certainly could be.

Setting an example

Very close to the city

centre of Leeds, you will find 60 low-energy homes, forming a little oasis along the River Aire.

Where parking spaces once were placed, you will now find flowerbeds and vegetable planters that line this car-free street of Solar Avenue. Using up to ten times less energy than a conventional house, their heating demand is so low that they actually create excess electricity that is used to charge shared electric cars. Instead of a timber frame, they have build these homes using clay blocks, that are slotted together and contain air pockets, taking away the need for additional insulation. Due to their thermal efficiency, 60% of the tenants have not had the need to switch on their heating at all – some, for twelve years already.

The benefits of Investing in Eco-Friendly Properties

With the interest in green housing increasing, the benefits for landlords investing in these kinds of homes is steadily increasing.

Towards the end of 2020, the government announced its extension to the Green Homes Grant. Homeowners and landlords have until the 31st March 2020 to get their upgrades completed, however the renovations done under this scheme must increase the energy efficiency of the property in order to qualify. These upgrades and renovations include heating, insulation, draught-proofing and double or triple glazing. Renewable energy features like heat pumps and solar panels also qualify under the grant.

With the globe slowly moving towards a more sustainable future, and with the assistance of the grant, more and more buyers are wanting to embrace this lifestyle, and will even spend a little extra on their investments in order to implement this.

So why should landlords invest in “Green” rental properties?

The benefits to landlords to invest in green housing is huge. Especially with the above mentioned grant, it helps the landlord to save money. You can make the necessary improvements thus make your properties more energy efficient. It also makes the buy-to-let market more appealing as you can easily add value to your properties with very little lay-out. In turn, this will also help to improve the standards of the private rented sector.

As tenants tend to stay in their rented homes for longer periods of time, so do they expect more from the rented properties and the landlords.

 Landlords who invest more into their properties and make the changes that tenants are looking for, means they are seeing the most success. Also, thanks to the Covid-19 lockdowns and more businesses offering a work-from-home opportunity, many households have become increasingly aware of the household bills and how they have risen. For this reason, green housing is appealing to more tenants than ever before. Landlords can therefore use eco-properties and energy efficiency improvements as great selling points to prospective tenants.

People are willing to pay more for an electric car in order to do the right thing for the environment. The question is, will the rising trend in eco-properties continue on this trend? Only the market will decide.