Tenants are willing to pay much more for greener homes!

More than half of tenants would be willing to pay more in rent in order to live in a greener home, new research has revealed.

The survey found that 98% of renters would prefer to live in an energy-efficient home and 52% would be willing to pay an extra 10% in order to do so.

A third of renters (33%) would accept a 5% rent increase, while 8% would be willing to pay an extra 20% if it meant they could rent a greener home.

The vast majority of renters (85%) were happy to consider a so-called “green lease”, which includes clauses designed to ensure the tenant and landlord work together to improve the home’s energy efficiency, while reducing costs and environmental impact.

Already, 95% of renters expect their property to have double glazing and 92% expect it to have loft or wall insulation. Furthermore, 92% expect recycling bins and 73% expect LED lightbulbs, 56% expect smart meters and 38% expect smart thermostats.

On top of this, 50% of renters expect dual flush toilets, while 26% expect solar panels and ground source heating.

We’ve heard a lot recently about the cost to landlords of making their properties greener, from replacing gas boilers with heat pumps to installing insulation. This survey has revealed that tenants are prepared to play their part too, with over half of renters happy to pay more for greener homes.

It is overwhelmingly clear that tenants are demanding greener choices than the rental sector currently offers. Clearly, renters know what they want when it comes to green credentials. And while many landlords can’t afford solar panels or heat pumps, smaller eco improvements can help properties stand out and increase renter appeal.

Landlords should be mindful of this sentiment and take any steps they can to make their properties greener.