According to specialist BTL broker Mortgages for Business, this is the seventh month of consecutive increases since August 2021, when they were 118 green mortgage deals on the market.
The broker said that green BTL mortgages make up 15 per cent of products on the market.
It added that limited companies also had improved green mortgage choices, rising to 244 deals this month, which is a fivefold increase on last year.
The research added that green limited company products made up 19 per cent of all limited company products.
Gavin Richardson, managing director of Mortgages for Business, said that the growth in green BTL mortgage deals showed a “recovery in the BTL sector but also the willingness of lenders to innovate”.
He added that lenders were now focusing on greener products for landlords, which is partially due to the government committing to making Britain carbon neutral by 2050 and the consequent need to upgrade housing stock, as well as upcoming legislation around BTL properties and required EPC ratings.
Richardson explained: “Given much of the UK’s ageing housing stock is very energy inefficient, making our homes a major source of greenhouse gas emissions. At 14 per cent of the UK’s total emissions, housing has a greater carbon footprint than the farming industry, so there’s no question that improving energy efficiency is a critical part of tackling climate change.”
He added that the average bill for landlords to improve their properties’ EPC ratings ranged between £6,000 and £15,000 and a survey done by the company revealed 38 per cent of landlords could afford to invest in making their properties more energy efficient.
Richardson said: “Mortgage lenders have a huge part to play in helping landlords to fund their efforts – they have a responsibility to provide the facilities to allow landlords to fund this.”
