There’s no doubt that the world has become more conscious of environmental issues over recent years. Evidence suggests that consumers are now more aware of ethical and environmental issues surrounding the goods and services they use, with research from the Ethical Consumerism Report revealing that 50 per cent of consumers had avoided a product due to a company’s bad reputation. It’s no surprise then that more companies around the world are utilizing eco-friendly practices to appeal to a wider demographic, and the property market is no different. Along with smart homes, eco-friendly properties are likely to be a big property market trend for 2019.
Research has found that Millennials (those born within 1981 – 1996) are the generation that is more likely to consider eco-friendly qualities as an important factor in their purchases. In a number of UK cities, young professionals make up the largest number of people seeking rental properties, driving the demand for buy to let property. Those who are interested in pursuing buy to let property investment should keep this in mind, and consider taking steps to make their property more eco-friendly to appeal to this target market.
Not only are young professionals driving the demand for rental properties, but they’re also helping to boost rental yields in a number of UK cities like Liverpool and Manchester. Over the last few years, more and more young people are beginning to leave London and move to the North. Properties like apartments with a more high-end, luxury touch are often more desirable to this type of tenant, who is willing to spend more on rental properties that meet their requirements. Properties from companies like RW Invest have Manchester and Liverpool properties with modern, luxury designs and prime locations which appeal to a young professional tenant. Not only this, but a number of these properties are equipped with eco-appliances and energy efficient technology, making them ideal for investors hoping to appeal to this tenant type.
So why will eco-friendly properties be big in 2019? The number of young people leaving London for Northern cities like Manchester isn’t expected to decline any time soon. With an average house price of £484,173, buying a property in London is out of the question for many people, but especially young people hoping to get their foot on the property ladder. The affordability of Northern cities combined with the rising popularity of the region as a place to live and work has made more people consider buying property up North. Young people who hope to buy property over the next couple of years will struggle to save while paying London’s high rental costs, with rent in Manchester being 51% more affordable than in London, and will, therefore, head up North to save for their own property while renting.
For property investors who want to make their existing property or their next investment more eco-friendly, there are a few simple ways to do this. New builds are some of the most energy efficient types of property, boasting an energy rating of A or B, whilst only 2.2% of older buildings have the same. If you already own a rental property that isn’t a new build, consider adding smart features to the property such as solar panels and a smart meter to cut overall energy use.