Sustainability measures could see landlords boost property value
Landlords with UK property investment portfolios could boost the value of their real estate by installing sustainability measures.
According to the Royal Institution of Chartered Surveyors (Rics), the issue of sustainability is often not currently viewed as important to property market value, but this is something that is now ready to be changed.
The organisation argued that issues of sustainability and energy efficiency are becoming increasingly prominent in the government's housing policy.
As such it is likely that residential markets will become progressively sensitive to sustainability considerations, meaning that buyers will be prepared to pay more for a home that is more energy efficient.
Therefore, Rics argued that property valuers should be fully aware of the sustainability characteristics of buildings when carrying out a valuation.
"When calculating a property's worth, the market doesn't always take the issue of sustainability into account, but this could also have been said for central heating way back in the 1970s when people weren't convinced it was going to have a market impact," said Ben Elder, Rics global director of valuation.
"With the increased emphasis on green living and energy efficiency, it is highly possible that the market will need to adapt.
Sustainability features include a number of measures that owners of buy-to-let properties can add to their accommodation, including energy-efficient boilers and insulation.
However, elements such as a building's proximity to public transport links and its ability to adapt to occupiers' changing future needs could also be considered in a valuation, said Rics.
Landlords could also find that by adding sustainability measure to their properties that they are better able to attract tenants and charge higher rents because of the lower energy bills that will result.
It follows a recent survey by the National Landlords Association which found that the majority of landlords would at least consider making energy efficient improvements under the government's soon-to-be-introduced Green Deal scheme.
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