By With demand for rentals buoyant and landlord’s rental returns healthy, it’s vital that the focus on greener strategies remains strong and coherent across rural parts of the UK.
Rather than being complacent, rural landlords are generally more closely tied to the land and, as such, are impacted by climate change and environmental issues.
They might oversee tenant farmers or properties that, due to their rural setting, are older and harder to switch up to be as energy efficient as new builds or urban residences.
This article will explore the UK Government’s green drive and why it’s important for rural landlords to remain focused on adopting and developing green strategies now and in the future.
What green and financial incentives are on offer from the UK Government?
Rural communities are vital in the UK’s transition towards sustainability and are required to comply with the government’s current EPC targets as they are in urban regions.
As such, the government provides green incentives and finance programmes like the Green Homes Grant to incentivise landlords, with mortgage discounts and tax incentives also on the table.
It makes sense that the bulk of older properties are often in rural parts of the UK and that they are harder to upgrade to be more sustainable compared to town and city dwellings.
However, because of the investment in new-build construction, the government’s key findings suggest that sustainability differences between rural and urban areas are actually fairly marginal.
In 2022, for instance, 41% of domestic properties, in predominantly rural areas, had an EPC rating of C or better compared to 43.6% of properties in predominantly urban areas.
Meanwhile, two in five private rental properties in villages date back to the pre-1900s with 52% of buildings being classed as ‘aged stock’ in smaller rural parts of the UK. Having traditional features, such as solid walls, solid floors or thatched roofs mean these rural properties are less energy efficient and trickier to upgrade.
Their thermal performance is also more difficult and expensive to switch up to be sustainable so, in some ways, the government is penalising rural landlords with strict EPC rating expectations irrespective of rural or urban locations.
There are, however, major improvement opportunities to be made in rural areas with landlords onside to make properties more sustainable.
As such, rural landlords and tenant farmers when supported by government initiatives can continue to work together and engage in their ongoing sustainability efforts.
Why rural landlords need to be committed to sustainability
The UK government aims to reach its environmental Net Zero 2050 property goals by investing in renewable energy sources like solar panels and heat pumps to reduce greenhouse gas emissions.
To reach these goals, sustainability efforts need to be widespread and criss-cross sectors including rural land managers and tenant farming.
The correlation that landlords committed to sustainability measures have greater success at tenanting property works for rural landlords too.
With rising energy costs, landlords and tenant farmers who implement eco-friendly upgrades to improve home insulation for energy-efficient properties benefit all parties with lower running costs and utility bills.
Their efforts might include installing solar panels, adjusting low-flow faucets and upgrading boilers.
Rural landlords also hold a unique stance in increasing sustainability through land and property ownership.
Adopting regenerative agriculture techniques, such as improving energy efficiency in properties are impactful steps landlords can take that offer greater savings and appeal to tenants in the longer term.
Adopting practices like installing solar panels and improving insulation reduces energy costs can lead to increased rental prices especially when demand is high and better asset value.
On farms and agricultural land, regenerative practices improve soil health and productivity over the longer term.
Therefore, staying committed to sustainability goals also makes financial sense by reducing energy costs, future-proofing assets and meeting rising tenant demand.
Why more can be done in rural areas
While sustainability efforts have grown in UK cities, rural areas have often lagged behind.
More needs to be done to expand green infrastructure and initiatives in rural spaces.
Though the UK government has created incentives to support projects like renewable energy farms in the countryside, adoption remains piecemeal. stressing the benefits of developing a greener strategy and being more committed when managing commercial properties or acquiring new investments.
The benefits of further expanding sustainability in rural developments are many.
Adding green features to rentals provides energy savings that benefits tenants while increasing the property value for landlords.
Regenerative agriculture promotes biodiversity, water conservation, and soil health compared to conventional practices.
Strengthening local community initiatives can also make sustainability feel more accessible.
With the urgency of climate change clear, the UK must mobilise rural sustainability efforts to reach national targets.
Landlords have an opportunity to lead by example and by investing in rural eco-development will pay dividends environmentally, socially and economically in the future.
How sustainability practices in rural areas motivate and benefit landlords
Implementing sustainability features in rural properties can provide numerous benefits that directly motivate landlords. Sustainability also attracts tenants, particularly younger people who expect greener homes and appreciate environmental conservation.
From a landlord’s perspective, therefore, adopting greener will attract desirable renters.
Surveys show that 75% of young renters across the UK agree that environmental credentials are vital, while 47% see a lack of greener building management as a deal-breaker.
Positive publicity and community recognition are other motivators. Rural landlords who spearhead innovative sustainability programmes build a more positive reputation in a locality.
This community support can lead to further opportunities.
By adopting greater eco measures, landlords can see improved occupancy rates, higher ROI, greater support, and better tenant retention.
Adopting environmentally-friendly practices an ongoing concern
Sustainability is a high priority everywhere and with climate change accelerating, rural areas are already reporting the negative consequences of flooding and extreme weather.
Implementing eco-friendly practices helps mitigate these impacts.
With environmental concerns only growing, adopting regenerative strategies in rural settings, aligns rural landlords with increasingly important sustainability strategies and values for the good of their local and wider communities.
Lastly, rural communities are often tight-knit with strong social ties and care for the community.
Landlords in these settings can take frontline action and advocate eco-friendly practices for a long-term benefit by spearheading green initiatives that strengthen relationships, attract tenants and go so way in helping to meet government EPC targets.
Going green can also future-proof a landlord’s assets against potential future government regulations.
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