Almost six in 10 landlords could be missing out on lower green mortgage rates by not undertaking new EPC assessments following energy efficient upgrades to their properties.
The survey of over 500 landlords, undertaken for Paragon Bank’s ‘Improving standards and sustainability in PRS properties’ report, found that just over one-quarter (28%) had their properties reassessed after making energy efficiency upgrades, improving their EPC ratings.
A lower proportion, 14%, found their properties’ EPC rating stayed the same.
Separate research, undertaken on behalf of Paragon by Pegasus Insight, revealed that six in 10 landlords own a property with an EPC rating of ‘D’ and one-quarter have a property rated E, F or G.
The survey of nearly 900 landlords highlighted that just under half (48%) of the average landlord’s portfolio does not meet EPC of ‘C’ or above, the new standard proposed as part of a recent government consultation on PRS minimum energy efficiency standards.
Louisa Sedgwick, managing director of mortgages at Paragon Bank (pictured above), said: “We were one of the first lenders to launch green mortgages, offering lower rates for properties with EPC ratings of A-C, incentivising landlords to purchase homes with better energy efficiency.
“These rates are also available on remortgages, so we’d encourage landlords to reassess their properties following any energy focused upgrades because they could be eligible to take advantage of lower pricing.
“This research aligns with government data highlighting how millions of properties will need to be upgraded to meet the proposed new minimum energy efficiency standards.
“As a result, we believe the 2030 target for all rental properties is unrealistic and could exacerbate the undersupply of homes for tenants.
“We’ve responded to the ‘Improving the energy performance of privately rented homes’ consultation, calling on the government to abandon its 2030 target and instead adopt a phased implementation between 2030 and 2035.”
