In a recent survey conducted by the Mortgage Advice Bureau, mortgage lenders and advisers are urging the government to reconsider the relaxation of energy performance certificate (EPC) legislation for landlords. The survey included some of the UK’s largest mortgage lenders and advisers, revealing that 49% of lenders and 32% of advisers support the reinstatement of the EPC changes, either by the current government or a new administration.
The initially proposed EPC changes, aimed at compelling landlords to enhance the energy efficiency of their properties by imposing fines for non-compliance, were abandoned by the government.
The survey, undertaken to gauge the mortgage sector’s stance on “green homes,” aligns with the industry’s commitment to promoting sustainability and energy efficiency within the housing market.
Ben Thompson, Deputy Chief Executive of Mortgage Advice Bureau, emphasized the significance of addressing climate change and fostering energy efficiency in UK homes. He stated, “At a policy and industry level, we have a responsibility to push the housing market to a more sustainable future – one that is as energy efficient as possible.”
Highlighting the urgency of the matter, Thompson added, “The UK has some of the oldest and least efficient homes in Europe, so the government’s decision to scrap the plans to incentivize landlords to upgrade their properties is not going to help solve the problem.”
Thompson proposed a collaborative approach that considers the concerns of landlords. He suggested exploring alternatives such as refunding Stamp Duty Land Tax (SDLT) as an incentive for landlords who retrofit their properties, emphasizing the need for positive encouragement over punitive measures.
The survey also unveiled that 82% of lenders believe collaboration between builders and lenders is the most effective means to achieve energy-efficient homes. Conversely, 18% believe builders alone should bear the responsibility.
Regarding the acceleration of green mortgages, 31% of lenders highlighted the importance of increasing public awareness and education about the benefits of such products. Another 29% emphasized the need for advocating government policies and incentives for green mortgages.
On the other hand, mortgage advisers identified offering more competitive interest rates and incentives for green mortgage products as their top priority (25%). Additionally, 22% stressed the importance of developing a broader range of green mortgage products tailored to different needs and budgets.
Thompson concluded, “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.” The call for a government U-turn reflects a growing consensus within the mortgage industry for decisive action in promoting energy efficiency and sustainability in the housing sector.