"We know many landlords are still grappling with the upcoming minimum energy efficiency standards, and our new assessment with Eco Approach gives landlords clear insight into what is needed to meet their obligations."
- Dan Clinton - The Mortgage Works
The Mortgage Works, the buy-to-let lender of Nationwide, has announced that it will deliver free property assessments and launch two new energy efficiency further advance products aimed at supporting landlords to meet 2030 energy efficiency standards.
The initiative comes as research from The Mortgage Works shows two-thirds (67%) of landlords are unaware that properties will need a minimum energy efficiency rating of ‘C’, and 73% don’t know when the new regulations come into force, leaving many at risk of inaction with just over four years until implementation in England and Wales.
As part of the pilot, The Mortgage Works will fund 1,000 property assessments for eligible landlords, delivered in collaboration with retrofit specialist, Eco Approach.
These assessments will show how far the properties are from an EPC ‘C’ rating, provide recommendations and estimated costs on how to improve the EPC rating, explain any exemptions or exceptions, inform the landlord of any grants that would be available to the property and provide support with carrying out the work.
The pilot will be used to test landlord demand and engagement, with a view to rolling the service out to all TMW customers.
Its research finds that 55% of landlords would value help in identifying the most cost-effective improvements, while 50% would benefit from guidance around financing.
Alongside the assessment pilot, The Mortgage Works is launching two new energy efficiency further advance products, offering rates around 2% lower than the lender's standard further advances.
The two and five-year fixed rate products are available up to 75% LTV and both have a rate of 2.99%. They will be available to existing buy-to-let, buy-to-let large portfolio and limited company buy-to-let customers.
According to research from the National Residential Landlords Association, 42% of landlords say cost barriers are very or extremely significant, while research from The Mortgage Works shows 63% of landlords are unsure of how much it will cost to bring their properties up to an EPC ‘C’ rating.
However, 21% estimate spending up to £6,632 on average, depending on the property’s current value. This level of investment would fall well within the maximum borrowing available through the Energy Efficiency Further Advance.
According to The Mortgage Works’ latest buy-to-let report, ‘A’ or ‘B’-rated properties command a 12.2% price premium over similar ‘D’-rated homes, while ‘C’-rated properties achieve a 3.7% uplift.
‘A’ or ‘B’-rated properties also attract an 8.1% premium, around £85 per month based on average rents of £1,075, compared with a 1.8% uplift for ‘C’-rated properties, around £20 per month.
Dan Clinton, head of buy-to-let at The Mortgage Works, said: "We know many landlords are still grappling with the upcoming minimum energy efficiency standards, and our new assessment with Eco Approach 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. 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."
Lee Rix, managing director of Eco Approach, said: "We are proud to be working with The Mortgage Works on this important initiative, helping landlords understand the improvements needed across their properties and giving them a clear, practical route to action. Combining discounted lending products with Eco Approach's retrofit expertise means landlords can rest assured that high-quality installations, underwritten by insurance-backed guarantees, will assure compliance with the new legislation.
"Our resident-first approach is designed to make the journey smooth and informed for landlords and tenants alike, supporting better property performance and homes that are warmer, healthier and more affordable to run."
David Hollingworth, associate director at L&C Mortgages, said: "The clock is ticking for landlords to improve the energy efficiency of their properties, and the sooner that they start to think about the necessary steps, the easier it should be to manage the work and expenditure. Although many landlords will realise that they will need to take action, it can be hard to know where to start.
"It’s therefore important to be able to pinpoint a practical plan to work towards the necessary standards. Being able to evaluate and understand the size and cost of the job, followed by tailored advice on the options to fund improvements, should help avoid a last-minute panic as deadlines approach."
