How Intermediaries Can Help Landlords On The Path

Jonathan Stinton Head of Intermediary Relationships

HOW INTERMEDIARIES CAN HELP LANDLORDS ON THE PATH TO A MORE EFFICIENT PROPERTY PORTFOLIO

Private rental properties are among the least energy efficient in the domestic housing stock, costing over £6bn in energy bills in 2018 and producing emissions of around 11 megatonnes of carbon dioxide equivalent each year1. Despite the current cost of living crisis, improving energy efficiency of our housing stock is still central to reaching net zero by 2050, and landlords, who could soon be facing legislation making these energy improvements a legal necessity, have a critical role to play.

New rules could mean that if landlords want to rent out their portfolio, properties will have to meet a minimum EPC Band C by 2025 for new tenancies, and 2028 for existing ones. Landlords will need to understand exactly how these rules affect their portfolios, lest they risk incurring fines, or even be unable to let or remortgage their properties.

Intermediaries have a key part to play. Their knowledge of lender’s products, advice and guidance could benefit their clients to help them understand the importance of the EPC requirements and new regulation and raise landlord awareness of environmental issues. So how, exactly, can intermediaries help?

Understand the regulations

The latest EPC regulations are still working their way through the legislative process, but these new requirements are already creating confusion. And what support will there be for landlords who can’t afford to make the changes? For example, if measures do come into effect, shaking up current minimum energy efficiency standards, intermediaries will need to understand exactly how they affect their customers and the opportunities which follow just like any other legislation.

Help clients make the right choices

Some intermediaries won’t be retrofit experts, but knowing what changes your landlord customers can make that will have the biggest impact on EPC ratings can help to cement stronger relationships between intermediary and client.

Here are just some of the issues landlords will need to consider: Stop the escape! - Around 18% of heat loss occurs through windows alone2, and single glazed fittings are some of the worst offenders. Replacing these panes with double or triple glazing can have a big impact on reducing heat loss, but landlords must also make sure these fittings are draught proofed. This will avoid heat loss occurring around windows, which would otherwise reduce the effectiveness of these measures.

Keep it insulated - Many properties today have loft insulation, but there are other measures that can greatly benefit energy efficiency. This ranges from cavity and solid wall insulation (just 9% of properties with solid walls are insulated3) to even insulating tanks, pipes and radiators.

It’s the little things that matter - Even small insulation tweaks can have a big effect on EPC ratings and energy bills. The Energy Saving Trust estimates that little fixes, such as fitting a hot water cylinder with an insulating jacket, could save the average home around £35 in heating costs – or the equivalent of 115kg of CO2.4

Green schemes could save your clients £££

Intermediaries are often already in tune with what’s on offer in the mortgage market, and this is just as important when it comes to knowing about green schemes.

At Coventry, we offer our Green Together Reward scheme. This provides eligible customers with a £500 reward for carrying out qualifying work that improves a property’s energy efficiency, such as fitting double glazing, installing insulation or setting up solar panels.

Even knowing about some of these schemes and changes landlords can make to their rental portfolio could save them some money. But more importantly, guiding landlords on these issues and helping them to improve their properties’ energy efficiency could lead to more of Britain’s homes being friendlier to the environment too.

1 BEIS analysis, based on Energy Consumption in the UK (2019), English Household Survey (2019), National Energy Efficiency Database, and Treasury Green Book energy prices (2019).

2 https://bit.ly/2EABq0O 3 https://bit.ly/3F1jG1j 4 https://bit.ly/3VJ1CP9