With currently less than four years before all new tenancies need to be in properties rated EPC ‘C’ or above, there are still landlords who need to undertake remedial work on at least one of their properties.
They are therefore understandably concerned about how they will both fund the work, find someone to do it and have it completed in time.
The side effect of these concerns is that a significant number of landlords admit they are ready to give up and already considering selling properties.
An unintended consequence of this sentiment could result in a backwards step in meeting the government’s target around climate change, for example, if these properties are taken up by the owner occupier market, where there are currently no minimum energy efficiency requirements.
Working with the sector to understand how best to help landlords improve the energy efficiency of their properties and the timeframe within which they can do this may ultimately lead a better outcome for everybody.
Financing is also key and while our research suggests landlords have money set aside to deal with unexpected costs arising from their properties, it may not be enough to also cover the energy efficiency improvements.
The Mortgage Works’ latest research shows that landlords have an average of £15,579 set aside to cover unexpected costs with their rental properties. However, more than half (51 per cent) have less than £10,000.
Although landlords with multiple properties have a larger sum set aside to deal with unexpected costs (£35,202 for those with 20 or more properties), the average amount they have per property is actually less than those landlords who have just one or a small number of properties.
That is why The Mortgage Works launched its Green Further Advance earlier this year, giving landlords access to funding at a lower interest rate than they would get on a standard further advance and helping reduce the upfront cost facing landlords as they try to meet the government’s deadline.
*Daniel Clinton is head of lending at The Mortgage Works
Nationwide Building Society - parent company of The Mortgage Works - is working in partnership with MakeMyHouseGreen on a pilot scheme to help 300 residential landlords and owner occupiers improve the energy efficiency of their homes through the installation of solar panels and batteries.
The pilot is available to those in Wiltshire, Dorset, Hampshire or East Sussex and more information is available here.
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