Green credentials move into top three on landlord buyer property wish list

Research from Hodge Bank suggests 82 per cent of landlords placed the green credentials of a property up there with potential for returns.

Andy Button, head of investment finance at Hodge, said: “The buy-to-let market is particularly buoyant right now with demand continuing to grow throughout the pandemic, and it’s interesting to see how the priorities for landlords are changing when looking to add to their portfolio.”

Button said sustainability will feature more in new build development design, and more stringent compliance to EPC, and an investment strategy closely aligned to sustainability could actually improve cash flows in the longer term, as tenants might be prepared to pay higher rents, in exchange for lower utility costs.

“Our research suggests that investors are very much alive to the longer-term benefits that having sustainability credentials in a portfolio can afford,” he added.

A Savills report confirmed 26 per cent of people considered the environment the most important issue facing the country and Opinium research showed 78 per cent of the public believe they have a personal responsibility to deal with the climate crisis.

Hodge’s portfolio buy-to-let product offers mortgages of up to £5m for between four and 15 properties and will also loan to those buying multi-unit blocks.

The lender also offers a specialised residential investment loan, of up to £10m for larger investors with over 15 properties or units, including multi-unit blocks and houses of multiple occupancy.

Hodge Bank’s commercial property arm focuses on development and investment finance, and offers saving products to private individuals, business and commercial clients.