The Mortgage Works to pilot landlord EPC support package

The Mortgage Works is offering free property assessments and cut-price borrowing to help landlords prepare for the proposed Energy Performance Certificate (EPC) standards from 2030.

For many of them, the first job may simply be working out what needs fixing.

The buy to let lender, which is part of Nationwide, will fund 1,000 assessments through retrofit specialist Eco Approach as part of an initial pilot.

Landlords will receive an estimate of how far a property is from achieving an Energy Performance Certificate rating of C, along with recommended improvements and indicative costs.

Landlord EPC insight

The lender’s head of buy to let, Dan Clinton, said: “We know many landlords are still grappling with the upcoming Minimum Energy Efficiency Standards, and our new assessment gives landlords clear insight into what is needed to meet their obligations.

“By having the free property assessments with Eco Approach, along with The Mortgage Works’ discounted Energy Efficiency Further Advance products, we aim to remove the uncertainty and some of the cost barriers.”

He added: “Improving energy efficiency isn’t just about meeting future standards, it can also enhance property values, boost rental yields and create more comfortable homes with lower energy bills for tenants.

“We’re committed to helping our landlord customers act now so they’re better prepared for the changes ahead.”

Landlords query EPC costs

The Mortgage Works found that 63% of landlords did not know how much it would cost to raise their properties to an EPC C rating.

Some 21% estimated that they would need to spend an average of up to £6,632, depending on the property’s current rating.

The lender says this would fall within the maximum borrowing available through its new further advance products.

Its latest buy to let report found that homes with EPC ratings of A or B achieved a 12.2% price premium against comparable D-rated properties. C-rated homes recorded a 3.7% uplift.

EPC exemptions assessed

TMW says the assessments will also cover possible EPC exemptions, available grants and support with arranging the work.

Also, the pilot would test demand before a possible wider launch to all its customers.

Its research found that 67% of landlords were unaware that properties would need to achieve a minimum C rating.

While 73% did not know when the requirements were expected to take effect in England and Wales.

More than half, 55%, said they would value help identifying the most cost-effective improvements and 50% wanted guidance on how to finance the work.