Almost half (49 per cent) of mortgage lenders want to see a government U-turn following the relaxation of EPC legislation for landlords, data from Mortgage Advice Bureau has revealed.
In addition, 32 per cent of advisers also said they would welcome any decision to reverse the EPC changes, whether this is by the current, or a newly elected, government.
These findings follow the government’s decision to scrap plans to encourage landlords to upgrade the energy efficiency of their properties.
Mortgage Advice Bureau deputy CEO, Ben Thompson, said: “The UK has some of the oldest and least efficient homes in Europe, so the government scrapping plans to encourage landlords to improve their homes is not going to help solve the problem.
“However, we must note the concerns of landlords and look to work collaboratively, where the government focuses on using the carrot instead of the stick to encourage green changes.
“For example, looking to refund Stamp Duty Land Tax once a property has been retrofitted might be one way to incentivise green changes.”
The research found, when asked what the main thing the mortgage industry needs to do to accelerate efforts of green mortgages, 31 per cent of lenders pointed to increasing public awareness and education about the benefits of such products.
Meanwhile, advisers believed offering more competitive interest rates and incentives for green mortgage products was a priority, an initiative that was mentioned by 25 per cent of adviser respondents.
Advocating for government policies and incentives for green mortgages was also ranked highly among lenders.
With the ongoing cost-of-living crisis and increasing costs, lenders believed there needs to be development of a wider range of green mortgage products tailored to different needs and budgets (22 per cent).
Thompson added the industry must “face the reality” that the UK will need to upgrade its leaky housing stock.
He explained that, with energy bills in the spotlight, EPC ratings are climbing up prospective buyers’ wish lists, and, if the housing market is to meet net zero targets, properties need to be retrofitted.
“Green mortgage products (and the wider promotion of these) is one part of the puzzle, and we must ensure these are being put to prospective buyers,” he said.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
