Landlords miss out on green BTL mortgage savings without EPC reassessments

Landlords could be missing opportunities to secure cheaper green mortgages by not updating their Energy Performance Certificate (EPC) assessments after making energy-saving improvements to their properties, a study reveals.

The research from Paragon Bank, which surveyed more than 500 landlords, has also led it to declare that the 2030 EPC deadline is ‘unrealistic’.

The bank found that 57% of those who had enhanced their properties’ energy efficiency did not commission a fresh EPC assessment post-upgrade.

This oversight could prevent them from accessing preferential mortgage rates available for properties rated A to C on the EPC scale.

2030 target is unrealistic

The bank’s managing director of mortgages, Louisa Sedgwick, said: “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 government to abandon its 2030 target and instead adopt a phased implementation between 2030 and 2035.”

Landlords made EPC improvements

Paragon also found that just 28% of landlords who made EPC improvements had their properties reassessed, resulting in better EPC scores, while 14% saw no change in their ratings.

Further insights from a separate Paragon survey of nearly 900 landlords, revealed that 60% own properties rated D.

However, 25% hold properties with even lower ratings of E, F or G.

Also, nearly half (48%) of the typical landlord’s portfolio falls short of the proposed minimum EPC rating of C.

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