Green Finance options for Landlords
Landlords urged to upgrade property EPC ratings in light of new legislation
Last year the government published its strategy to improve the EPC rating in privately rented homes to a minimum rating of C for new tenancies by 2025, and by 2028 for existing tenancies.
Publishing the strategy, the Department for Business, Energy, and Industrial Strategy says,
“The UK housing stock is generally older than in the rest of Europe, and the potential for improvement in the energy performance of our homes is considerable. This is perhaps most significant in the private rented sector, which represents 20% of our housing stock, and has the highest concentration of fuel poor tenants (17.7%).1 Improving the energy performance of these homes is a vital part of our wider strategy to decarbonise buildings cost-effectively, in light of the significant challenges posed by climate change.”Department for Business, Energy, and Industrial Strategy
What do Landlords need to do?
The move is a significant shift for the investment market and one savvy landlords are preparing for. Investors planning their long-term portfolio strategies should begin to prepare for the changes now. The proposed laws stipulate those who do not meet the new criteria could be subject to heavy fines. The government are seeking to prohibit estate agents from advertising homes that do not meet the required standards. In addition, the change in regulation is likely to influence a shift in tenant attitudes, where renters will seek more energy-efficient homes.
At Pilot Fish, we are taking an active approach in supporting our investor clients, ensuring they are up to date with the legislation and sourcing products that support long-term strategy. Since the announcement we have seen some excellent products come to market that landlord can take advantage of.
From loans that support home improvements, to cash back for increasing the energy rating, we’ve rounded up some of the best examples of green finance products. As always, products change on a weekly basis. To access the most suitable product for your circumstances, at the very best rate, speak with your broker.
- Landlords need to ensure their properties have an EPC rating of C or above for: new tenancies by 2025, existing tenancies by 2028
- Landlords face fines or the prospect of not being able to market their properties if they do not comply with the new regulations
- Products are coming to the market designed to support and incentivise landlords to move forward with the changes
- Pilot Fish can source the best product for your circumstances to support property upgrades
To discuss your investment portfolio financing requirements contact our Director of Commercial, John Shevlane