- Blog
- 8 August 2024
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In the evolving landscape of the UK’s private rental sector (PRS), energy efficiency is increasingly becoming a critical focal point. The government has mooted that it’s likely that landlords will be required to improve their properties to a minimum Energy Performance Certificate (EPC) of C or higher by 2030.
This move certainly aligns with broader environmental goals, emphasising the reduction of carbon emissions and improvement of living standards. As part of this ongoing focus, we at Fleet Mortgages have already stepped up with a £1,000 Green Cashback incentive to encourage landlords to enhance their properties’ energy efficiency.
We launched the £1,000 Green Cashback initiative last year to support landlords in making energy-efficient upgrades. This incentive is available to landlord borrowers who secure a five or seven-year fixed-rate mortgage with us and upgrade their property’s EPC rating to A, B, or C within the fixed rate period.
The cashback serves as a financial boost, significantly offsetting the costs associated with these improvements. To date, we have disbursed over £60,000 to landlords who have embraced this opportunity to enhance their properties. You can find more details about Fleet’s cashback offer here.
Landlords benefiting from the cashback have implemented various measures to boost their EPC ratings. Common upgrades include loft insulation to enhance heat retention, smart LED lighting to reduce energy consumption, updated radiators to improve heating efficiency, double glazing to minimise heat loss, and new boilers to increase overall energy efficiency.
These improvements not only elevate the EPC rating of the property, but they also contribute to significant energy savings, reduced utility bills, and improved tenant satisfaction.
Mortgage advisers play a pivotal role in guiding landlords through the process of upgrading their properties. By educating clients on the benefits of energy efficiency and the available incentives like our cashback offer, advisers can help landlords make informed decisions.
Key actions for advisers could include recommending energy audits to assess the current energy performance of properties and identify areas for improvement, providing guidance to help landlords develop plans for implementing energy-efficient upgrades and facilitating access to funding by informing clients about incentives and funding options and assisting with applications.
The probable reintroduction of the minimum EPC rating of C represents a significant step towards the UK’s environmental objectives, aiming for net-zero carbon emissions by 2050.
Approximately 60% of private rental properties currently fall short of this standard, indicating a substantial need for upgrades. While the financial outlay for these improvements can be considerable, the long-term benefits include increased property value, higher tenant satisfaction, and compliance with future regulations.
For landlords, the policy shift presents both challenges and opportunities. Our cashback initiative provides a tangible incentive to make necessary upgrades, easing the financial burden and encouraging proactive energy efficiency measures.
So, as the PRS adapts to new energy efficiency standards, initiatives like our Green Cashback will continue to play a crucial role. By fostering a collaborative effort between landlords and mortgage advisers, the sector can move towards a more sustainable and economically viable future.
Our limited edition product feature rewards landlord borrowers with a £1,000 cashback payment if they improve the Energy Performance Certificate (EPC) level of the property to a C or above during the course of the initial fixed rate period.
Terms and conditions apply.
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