This number was said to be relatively consistent across all portfolio sizes, indicating a large number of properties will need to have work done in the coming years if new legislation is introduced as expected.
This new legislation – which is due to be implemented in 2025 and require all newly rented properties to have a certification rating of C or above, with existing tenancies needing to comply by 2028 – is estimated to cost landlords an average of £10,400 per property to get them up to standard.
Interestingly, to fund these improvements, 71% of landlords would fund them from existing savings. Other popular methods are government grants/funding (25%), rent increases (23%), mortgage advances (11%) and equity release (10%). Those with 20+ properties are less likely to use savings (46%) and instead prefer to consider other methods including raising the rent (34%) and equity release (20%).
This data demonstrates a variety of potential approaches. Although it’s also prudent to point out the value of good, professional advice and the role specialist lenders will play in meeting landlords’ energy efficient demand.
Energy Performance Certificates (EPCs) play a key role in how properties are being assessed from a lending perspective
As one of the first specialist lenders to bring green mortgages to the market, this is an area which will continue to play a prominent role within our BTL (and residential) product range. Our products have been designed to provide a specialist mortgage solution to landlords who have made energy efficient improvements to their homes and deserve to be rewarded for their ‘green’ endeavours. And this is an ethos which is generating a great deal of interest from borrowers and intermediaries.
If our approach and green product range is something you would like to know more about then why not speak to your RAM today.
FOR INTERMEDIARIES ONLY