Despite calling for such actions, Shawbrook Bank’s poll of 1,000 landlords found that more than a quarter were unaware that they could access mortgages with these incentives. Just 18 per cent said they were making use of green mortgages.
Of the landlords who had made green improvements to properties, 57 per cent used cash savings, 30 per cent charged the work to credit cards and 24 per cent took out personal loans to fund the renovations.
Some 16 per cent used equity release, 14 per cent opted for a second charge mortgage and 12 per cent used a bridging loan.
More than half of the landlords surveyed said they would consider a green mortgage discount in the future. As well as this, a third want lenders to help them with a plan to improve the efficiency of their homes while 28 per cent wanted access to bridging finance.
The government has proposed that buy-to-let properties must have an EPC rating of at least C by 2025 for new tenancies, while existing tenancies must reach this deadline by 2028.
Shawbrook said the deadline could possibly be extended to 2030.
Emma Cox (pictured), MD of real estate at Shawbrook, said: “Whether the government proposals around EPC ratings come into fruition this year or not, landlords will need to ensure they protect their income and ensure their properties are legally ‘lettable’ as this issue isn’t going to simply disappear. In order to ensure a healthier and more sustainable rental property market that works for landlords, tenants, communities and the environment, change is needed now.
“Importantly, however, landlords are not alone in this. Lenders, including Shawbrook, have been thinking about how to help them improve their properties, with a flurry of new propositions being launched this year.”
She added: “It’s vital that we are not just rewarding those landlords with property’s rated C or above, but that we, as an industry, are supporting those who need to make improvements.”
