The UK’s COP26 Climate Change Conference is being held in Glasgow on the 1st November 2021 to help make the world a greener and safer one for us all by tackling climate change and putting green initiatives in place.
The ambitious climate change targets are hoped to reduce emissions by 78% by 2035. The UK currently contributes 22% of total emissions, which is rather a considerable amount for such a small group of islands.
Due to so many UK government setbacks and blunders, the Green Homes Grant Scheme was unfortunately scrapped a whole year earlier than intended to be. The green homes scheme closed on the 31st March 21 when it was due to be complete the same time in 2022. This left many homeowners and contractors who had chosen to invest in the green initiative scrambling for solutions to meet the challenging strict guidelines and deadlines put in place.
The green initiative start date was postponed by a month, which left very little time to apply, receive approval, and complete the work before the 31st March 2021. The grant application system was said to be complicated and confusing. The contractors didn’t have sufficient time to train staff to cope with the increased demand. So, the Green Homes Scheme was struggling to take off before it had even launched.
The scheme was part of the low carbon solutions for the UK and the many ageing and low-efficiency properties found across England, Scotland, Wales and Northern Ireland. The green scheme was expected to help create thousands of green collar jobs nationwide.
To meet the demands set out by the governments involved at the Climate Change Conference, private and commercial property developers will need to make significant changes in their working practices and offer alternative green initiatives and follow stricter building practices.
What are green properties?
Green properties are developed with sustainability in mind. Green properties prioritise eco-friendly materials and methods without compromising on quality and safety and help to reduce carbon emissions. With as much as one-third of the global CO2 emissions linked to the property sector, governments worldwide are realising that urgent changes are required, and this really does mean that green properties could well be the next smart investment.
Whether it is green property initiatives for existing homes and commercial premises or new developments, going green and making properties sustainable and low carbon is the way to help make a difference to those staggering eco destroying stats that currently exist.
Why are green properties a smart investment?
There has never been a better time to consider investing in a green property, besides feeling good about putting your money into something positive for the environment and future generations. Investing in a green property for personal or commercial use is a wise move because it is an emerging sector with incredible growth potential.
People are becoming more aware of the green agenda, especially with groups like Extinction Rebellion often in the media driving their point home about the dire need to change how we live every day.
According to research by Neilsen, over 72% of Millennials are prepared to pay extra for a green property and within the UK are paying more for everyday items that are cruelty-free, organic, sustainable and low-carbon. As more people choose to make changes in what they buy, how they live and what they live and work in, the demand for green properties is only set to increase, so property prices will inevitably appreciate.
Long term, green properties will be the more affordable investment, particularly for those wanting to get onto the property ladder or start a property portfolio. Although the initial investment may be higher, the running costs are lower in a private residence or commercial business premises because of the renewable energy systems being put in place. This is highly attractive for those seeking to invest in an eco-friendly property or development.
Outlook for green property investments
As the UK government and other nations attending the COP26 in Scotland set out their plans to make the world a greener place once again, a real focus will be on sustainable building and housing developments that raise their green credentials. Smart investors will inevitably see capital growth over time as issues get ironed out and cut red tape.
The up and coming generations make up a large proportion of the rental market, and their desire for sustainability and low carbon homes investing in buy to let green properties could be a clever move. As property demand continues to see record levels, green property investors for the rental market could be one of the smart investments because where demand is high, so are the rewards—the very foundations of a profitable investment.
Talking to a property investment specialist will help provide more insight into which types of property will give the best return and which markets are forecast to remain the most stable as we pull out of the pandemic and discover new ways to work with the planet rather than against. It certainly seems that green properties are the new smart investment because this market is undoubtedly on an upward trajectory.
Cengizhan Cerit is a Turkish/British businessman. He has a long-standing and successful career in both residential and commercial property maintenance, property investment and entrepreneurship.
He leads two property management firms, SISI Property Ltd and Meden Ltd that he operates out of Ashford and London. With his strong interest in culture and business sectors, he continues to successfully develop both of these property firms.
Cengizhan Cerit is constantly updating his website with regular content covering all aspects of property investment, management and entrepreneurship.