Feb

MPs say landlords who don’t upgrade homes should pay higher mortgages

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A cross-party group of MPs and peers has suggested that landlords who don’t upgrade their properties should be liable for mortgage penalties.

The All-Party Group on a Green New Deal believes there should be a 1% mortgage interest rate premium levied on all buy-to-let properties with an EPC below band C which would be fully refundable if the standard was reached within three years.

Its new report – Local Edge, an inquiry into climate politics and the economics of recovery – argues for a combination of robust, top-down policies on green issues including localised power generation, food and transport schemes to help the UK meet the first of its major net zero targets: reducing carbon emissions by 68% below 1990 levels by 2030.

The group also suggests that the government’s proposals for a minimum standard of EPC C for new tenancies from 2025, and existing tenancies from 2028, should be introduced through the Energy Bill and turned into law.

Poor EPCs

Leading mortgage broker, Dan Lee (pictured) of Legacy Financial Consultants, has previously warned that lenders are suspending landlords’ mortgage applications when surveyors flag up poor EPCs. Buy-to-let mortgage firms are required to check if a property has the minimum legal EPC before lending via the government’s digital service.

The PRS is a long way from preparing for the imminent energy efficiency shake-up as data compiled for property data platform LandTech showed that 64% of private rental properties would currently fail to reach an EPC rating of C.

Meanwhile, most landlords are still in the dark about EPC changes, including 57% of those with a single property and 77% with four or more properties in their portfolio, according to Market Financial Solutions.

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