Your Business and Industry
How EPCs can further your client’s green mortgage journey
The Government’s Energy Efficiency Taskforce is charged with helping reduce energy consumption by 15% over the next seven years, cutting bills, and helping push down inflation.
Responding to the industry’s call for long-term funding certainty to help strengthen UK supply chains, £6 billion of government funding will be available from 2025 to support this objective, in addition to the £6.6 billion allocated– taking the total to £12.6 billion this decade.
EPCs remain the most prominent measure for charting a property’s energy performance and offer useful insight into the challenges, and potential costs involved in upgrading properties for residential and rental purposes.
In October 2022, the OMS published a report which outlined the performance levels of certain housing stock. This found that flats and maisonettes were the most energy-efficient property type in both England and Wales, with the average property falling into EPC band C.
Until now there has been a new build premium in play, as these properties often benefit from an EPC of C or above. This premium may now occur for any property with an EPC rating of C or above, which could lead to greater opportunities to improve properties below a C rating, so they too can take advantage of this premium when it comes to resale
According to the latest Q4 2022 BVA BDRC Landlord Panel research report, over two-thirds of landlords (68%) said they would now be less likely to purchase a property if it has an EPC rating below C. So lenders need to recognise the shift in .
At Foundation, our Green mortgages specifically include a ‘Day 1 remortgage’ feature which allows landlords to carry out the work required on a property to get it to this level and refinance with us as soon as that work is completed.
We are not the only lender offering this type of proposition but it does lead to further questions around if landlord clients are aware of this possibility and when it might come into consideration.
https://www.gov.uk/government/news/alison-rose-appointed-to-help-accelerate-energy-efficiency
https://www.ons.gov.uk/peoplepopulationandcommunity/housing
/articles/energyefficiencyofhousinginenglandandwales/2022
*This article was originally published on Mortgage Introducer
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