The buy-to-let (BTL) lender of Nationwide is piloting a support package for landlords to improve understanding of requirements that need to be met as part of incoming energy-efficiency requirements.
Research carried out by The Mortgage Works (TMW) showed that 67% of landlords were unaware that properties need a minimum Energy Performance Certificate (EPC) rating of C by 2030.
It also indicated that 73% did not know when new regulations come into force.
TMW said this initiative came in light of a significant gap in awareness and preparedness among landlords.
Funding of property assessments
As part of its support package for landlords, TMW will fund 1,000 property assessments for landlords.
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Eligible landlords will need a current EPC rating of D to G. This will be delivered in collaboration with retrofit specialist Eco Approach.
These assessments will identify how far the properties are away from an EPC C rating and will also help landlords understand any exemptions or exceptions to the certificate.
The assessment will provide tailored recommendations and estimated costs on how to improve their low EPC rating. Furthermore, it will inform them of any grants available to the property and provide support to the landlord with carrying out the work.
Dan Clinton, head of BTL at TMW, said: “By having the free property assessments with Eco Approach, along with The Mortgage Works’ discounted Energy Efficiency Further Advance products, we aim to remove the uncertainty and some of the cost barriers.
“Improving energy efficiency isn’t just about meeting future standards, it can also enhance property values, boost rental yields and create more comfortable homes with lower energy bills for tenants.
“We’re committed to helping our landlord customers act now so they’re better prepared for the changes ahead.”
The piloted support package will only be available to 1,000 landlords to begin with. TMW said it wanted to test demand and engagement, with a view to eventually roll out to all of its customers.
According to its research, 55% of landlords would value support in identifying the most cost-effective improvements.
Some 50% said they would benefit from guidance around financing.
Launch of ‘Energy Efficiency Further Advance’ products
Beyond the assessment pilot, two new discounted products are being introduced.
These Energy Efficiency Further Advance products will offer rates around 2% lower than TMW’s standard further advances.
The two- and five-year fixed rate products are available up to 75% loan to value (LTV) and will have a rate of 2.99%.
They will be available to existing BTL, BTL large portfolio and limited company BTL customers.
TMW said these discounted products will function to help landlords fund the improvements.
Uncertainty of costs to improve energy efficiency
According to research from the National Residential Landlords Association (NRLA), 42% of landlords responded that cost barriers were a very or extremely significant challenge.
TMW’s research showed that 63% of landlords are unsure of the cost it will take to bring their properties to an EPC C rating.
David Hollingworth, associate director at L&C Mortgages, said: “The clock is ticking for landlords to improve the energy efficiency of their properties and the sooner that they start to think about the necessary steps, the easier it should be to manage the work and expenditure.
“Being able to evaluate and understand the size and cost of the job, followed by tailored advice on the options to fund improvements should help avoid a last-minute panic as deadlines approach.”