How Can Landlords Help Combat Climate Change?
Last updated: 3.37pm, Sunday 24th October 2021
With Glasgow on the worlds stage by hosting the UN COP26 starting this week, we look at how landlords can help with climate change and the challanges and opportunities ahead.
by Gordon Campbell
24th October 2021
We all have a role in combatting climate change.
As world leaders play politics, it emphasises some important considerations for homeowners and landlords.
This is a blog to highlight and consider some thought to this subject.
With Glasgow set to host the 26th UN Climate Change Conference of the Parties (COP26) this month, leaders, dignitaries, climate change experts and campaigners from all over the world meet to tackle the urgent threat of global climate change, and it’s an exciting prospect for the city to be at the forefront of global news.
The COP26 summit will bring parties together to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change.
The UN conference will be a great advert for the city of Glasgow, the beautiful Scottish countryside and all our friendly nation has to offer.
Glasgow named one of Europe’s top green cities for property
Glasgow has been named one of Europe’s top green cities for property, living up to its name as the “dear green place” ahead of COP26 taking place in the city from 31st October to 12th November.
Scotland’s largest city among the top 20 major green cities for real estate in Europe, the Middle East, and Africa.
Glasgow performed particularly well for the availability of public transport, its amount of green space, and its number of green-rated commercial buildings – which came in at around 100.
What effect will that have on the property market in Glasgow?
It is predicted that a new resurgence of investment flows into real estate.
International investment has been strong in Scotland in previous years – and will regain momentum.
Prime offices are likely to be the main target along with some of the large build-to-rent schemes that are under way in Scotland’s Central Belt.
The Buy to Let markets in Glasgow has been remarkably robust during the pandemic and will continue to be, while the rise of retail warehousing and industrials has been relentless in increased demand, with a range of assets already trading and more deals likely to follow soon.
Can the Energy Performance Certificate (EPC) in investment properties be improved?
Currently, the benefits and drawbacks around EPCs are more direct and easily understood.
We all need to ahead in our thinking and action of what will need to be done to potential improvements, changes and legislation that may be ahead.
Depending on what you read, where, the indirect benefits of a good, high-scoring EPC can be tenuous, but with Climate Change now almost fully recognised by Western economies and their leaders, it’s almost certain that those indirect boons will emerge as accepted truths.
How long this will take is for debate, but homeowners and landlords should expect better mortgage rates and enhanced property values as the drive to net zero progresses.
And as we continue on that journey, we should be looking out for tax breaks or possible fines to encourage better EPC ratings. Darlington Council are looking at fining existing rogue landlords if EPC ratings are not improved.
This will not be an issue for our investors and tenants in Glasgow, but it does highlight one possible strategy for driving change.
What are the benefits of a good EPC rating?
- Properties for sale attractive to buyers
- Rental properties attractive for tenants, in an increasingly climate-aware demographic
- Energy costs understood moving forward
- An easy way to understand where energy savings and improvements can be made
- As well as being mandatory, increasingly an EPC should be seen as simply the right thing to do, protecting your property investment as well.
- For landlords, a good rating will give tenants peace of mind and cut turnover
- Illustrates homeowners and landlords are responsible citizens (at Alliance, we know this already)
- An efficiently heated and ventilated property will be less prone to degradation and, in the case of rental property, abuse by tenants.
- The drawbacks, increasingly, will be the opposite of the above. It seems a blithe statement of the obvious but poor ratings will eventually become a turn-off for possible buyers or tenants, and low scores may be used as bargaining chips to seek lower purchase prices or lower rents. It is worth thinking now about how your EPC rating can be as robust as possible.
We could have called this post 8 Ways EPCs Can Help Homeowners and Landlords, but with almost 8 billion people on the planet and COP26 on its way to Glasgow, the blog was to highlight some facts, share some positive news but to also get us thinking on how we all have to take greater consideration in all aspects of our life and as property investors.
Thank you for reading, and I hope this blog has been useful for you.
If you have any questions or are looking for some advice, please don’t hesitate to get in touch.
Gordon and James
Alliance Property Group. Making a Difference