More landlords embrace green initiatives

Landlords across the UK are increasingly adopting green initiatives, but there remains room for further improvement.

According to recent data from Redwood Bank, nearly a quarter of landlords benefiting from specialist business loans are already managing energy-efficient properties.

Its Green Reward scheme, launched at the end of last year, has been popular among commercial property owners with assets that fall within the A-C EPC rating.

The cashback initiative has accounted for 22% of the bank’s volumes and 31% of value, with the average loan for Green Rewards being 36% higher than those for non-Green Rewards products.

Stricter energy efficiency regulations

The bank’s senior products manager, Tom Worbey, said: “With stricter energy efficiency regulations on the horizon and tenants increasingly demanding comfortable and efficient homes, we wanted to support those landlords who were already hitting the mark by being energy efficient.

“We launched the Green Reward to do exactly that – reward those who were already displaying their eco-credentials and we are delighted to see so many taking advantage.”

He added that landlords who future proof their properties now will stay ahead of EPC regulations and avoid costly retrofitting.

The reward scheme is available for buy-to-let, semi-commercial and commercial properties, offering cashback of between 0.20% and 0.50% on loans for properties with an EPC rating of A, B or C.

Improved tenant satisfaction

Mr Worbey said: “Landlords benefit not only from cashback but also from lower operating expenses and improved tenant satisfaction.

“Embracing sustainability goes beyond meeting regulatory standards; it enhances property value and appeals to eco-conscious tenants.”

The product, which was shortlisted in the NACFB Commercial Lender Innovation category, has been praised within the industry.