Why sustainability compliance is a win for real estate
For businesses in the real estate sector, embracing sustainability compliance is not just about meeting regulatory requirements-it’s also about reaping the significant rewards that come with adopting green practices.
By integrating energy-efficient technologies, sustainable building materials, and eco-friendly designs, developers, landlords, and property managers can unlock a range of benefits that improve both their bottom line and their reputation.
First, cost savings are a major benefit. Energy-efficient buildings often lead to significant reductions in utility bills. Whether it’s through improved insulation, smart lighting, or more efficient heating systems, these upgrades lower operating costs over time.
Moreover, green buildings tend to attract tenants who are looking to reduce their own environmental impact, meaning that properties with energy-efficient features are often more appealing and can command higher rental rates(1).
In addition, complying with Minimum Energy Efficiency Standards (MEES) can have a positive impact on property values. As tenants and buyers become more environmentally conscious, there is growing demand for properties that meet high sustainability standards(2).
For landlords, ensuring compliance with MEES now can protect them from potential losses in the future, as properties that fall below the required EPC rating will become increasingly difficult to rent out(3).
Sustainability compliance can also improve a company’s reputation. As more businesses and consumers prioritise environmental responsibility, being known as a company that values sustainability can be a major selling point. Not only does this enhance brand loyalty, but it also can give companies a competitive edge in a crowded marketplace(4).
Sustainability in real estate helps businesses future-proof their operations. With regulations like MEES continuing to evolve, staying ahead of the curve ensures that companies can meet future requirements without the need for costly last-minute upgrades.
Bibliography
1 The future of real estate valuations: the impact of ESG (Accessed May 20235) https://www.rics.org/content/dam/ricsglobal/documents/latest-news/WBEF-ESG-and-valuation-2024.pdf
2 Domestic private rented property: minimum energy efficiency standard - landlord guidance (Accessed May 2025) https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance
3 How the new energy efficiency regulations will affect rental properties (Accessed May 2025) https://www.nrla.org.uk/news/how-the-new-energy-efficiency-regulations-will-affect-rental-properties
4 Why Green Buildings? (Accessed May 2025) https://ukgbc.org/our-vision/why-green-buildings