» Click here for the original article

There is growing evidence that clients are prepared to pay higher rents for green buildings, according to energy efficient specialists Sabien Technology.

It says while there is a long-established trend in America for buildings with a good energy rating to attract a higher rental income than other buildings with a lower rating has started to take hold in the UK.

Alan O’Brien, chief executive of Sabien says: “There is growing evidence that clients are prepared to pay higher rents for energy efficient buildings in the UK. By going green and future proofing buildings, owners can enhance yields and improve occupancy rates. Over the life cycle of a green building the savings can also offset a higher initial outlay and result in low, or even negative, carbon reduction costs.

“Tenants are attracted to green buildings as they see sustainability as an important product differentiator in the marketplace."

While it may be costly to make your commercial or residential property greener, you could save money in the long run. And it is possible to use your property to raise funds to pay for double glazing, insulation, efficient boilers, solar panels and any number of other green implements that could save on your bills and possibly allow you to glean more rent from green-minded renters. Talk to a buy to let adviser about your finance options and your property's potential.

O'Brien says: “In the long term, buildings which perform poorly in terms of sustainability and energy efficiency will become less attractive to occupiers as the Government introduces penalties to encourage energy efficiency and increased sustainability."

SOURCE: Sabien, 20/04/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog