Glenhawk brings out EPC boost incentive to encourage improvements

The lender said that borrowers can secure a discount of up to 0.25 per cent if borrowers improve to an EPC rating of C, or 0.5 per cent for an EPC rating of B or higher.

The discount will be available across its unregulated refurbishment product range, for residential assets and commercial to residential conversions until 31 May 2023.

Glenhawk said that the introduction comes amidst changing regulations, which could mandate landlords’ properties to achieve an EPC rating of C or higher by 2023 for new tenancies and private tenancies by 2028.

Although the legislation has yet to become law, compliance with minimum rating requirements will be “essential” for landlords and investors “seeking to maximise capital and rental values at the point of letting or sale”.

Michael Clifford, commercial director at Glenhawk, said: “The UK has the oldest housing stock in Europe, which poses a significant challenge for landlords and property owners.

“Given real estate’s well-publicised carbon footprint and the UK’s ambitious net zero targets, lenders like ourselves have an obligation to support borrowers in improving the energy efficiency of their properties.”

He added: “Aligned with our institutional backers, this is just the latest step on our sustainability pathway, with a more formalised product offering targeted for later this year.”