Landlords can now access green finance to make energy efficiency upgrades on their existing properties or to fund the purchase of new, greener investment properties. Green buy-to-let mortgages offer incentives, usually in the form of reduced interest rates, to landlords who own or buy energy efficient properties.
To qualify, most lenders require that the property has an energy performance certificate (EPC) rating of at least C or above. EPC ratings range from A to G, with the most energy efficient properties getting an A rating. If you are borrowing to upgrade a property, there are a range of improvements you can make, from boosting the home’s insulation or installing new upgraded windows, so if you’d like to explore how this could benefit you, please get in touch with one of our green finance experts.
Why now?
The race is on for landlords to improve the energy efficiency of their properties. In a bid to raise the standards of the UK’s rental stock, the government is consulting on legislation that will require buy-to-let properties to have an EPC rating of C or above for all new tenancies.
At a time of rising energy costs, greener homes can also give tenants greater certainty over their energy bills. One Knight Frank Finance client saved £420 per month after boosting their home’s energy credentials to an EPC rating of C. New builds, meanwhile, offer the potential for renters to save up to £2,000 on running costs each year, according to the Home Builders Federation, making a property more appealing. Plus, there’s an added benefit of potentially increasing the property’s value by up to 20% according to Knight Frank research.
How can I find out more?
As a landlord you’ll want expert advice. We can guide you through making the most of this growing opportunity in green property finance. Get in touch for an initial, no-obligation consultation. We have experts waiting to help you.