The Mortgage Works, a buy-to-let lender part of Nationwide, has launched a pilot scheme to assist landlords in preparing their properties for proposed Energy Performance Certificate (EPC) standards. The initiative includes offering free property assessments and access to discounted borrowing, designed to help landlords achieve the required EPC C rating by 2030.
Under the pilot, The Mortgage Works will fund 1,000 assessments for landlords through retrofit specialist Eco Approach. These assessments will provide landlords with a clear estimate of how far their property is from achieving an EPC C rating, along with recommended improvements and indicative costs. This aims to address a significant knowledge gap, as research by The Mortgage Works indicates that 63% of landlords are unsure about the potential costs involved in upgrading their properties to meet the new standards.
Dan Clinton, head of buy-to-let at The Mortgage Works, emphasised that the programme seeks to remove uncertainty and cost barriers for landlords. He highlighted that improving energy efficiency not only meets future regulatory requirements but can also enhance property values, boost rental yields, and provide more comfortable homes with lower energy bills for tenants. The lender's research found that homes with EPC ratings of A or B achieved a 12.2% price premium compared to D-rated properties, with C-rated homes seeing a 3.7% uplift.
The pilot will also assess potential EPC exemptions, available grants, and provide support with arranging necessary works. Furthermore, The Mortgage Works' research revealed that a substantial 67% of landlords were unaware of the requirement for properties to achieve a minimum C rating, and 73% did not know when these requirements were expected to take effect in England and Wales. Over half of landlords surveyed, 55%, expressed a desire for help in identifying cost-effective improvements, and 50% sought guidance on financing the work.
The discounted Energy Efficiency Further Advance products offered by The Mortgage Works are intended to help landlords finance these improvements. The lender estimates that the average cost for upgrades to reach an EPC C rating could be up to £6,632, depending on the property's current rating, which would typically fall within the maximum borrowing available through their new further advance products. This pilot will test demand before a potential wider launch to all of The Mortgage Works' customers, signalling a growing focus within the lending sector on supporting landlords through impending environmental regulations.