Landlords embracing green practices, but still more to be done
Almost a quarter of landlords accessing loans through a specialist business bank already have energy-efficient properties.
Residential and commercial portfolio owners with assets falling in the A-C EPC category have been able to take advantage of Redwood Bank’s Green Reward launched at the end of last year.
The cashback product has accounted for 22% of the Bank’s volumes and 31 per cent of value with the average loan 36% higher than for the non-Green Rewards products.
Tom Worbey, senior products manager, said: “With stricter energy efficiency regulations on the horizon and tenants increasingly demanding comfortable and efficient homes, we wanted to support those landlords who were already hitting the mark by being energy efficient.
“We launched the Green Reward to do exactly that – reward those who were already displaying their eco-credentials and we are delighted to see so many taking advantage.
“Of course, there is more work to do and landlords who future proof their properties now can stay ahead of regulations and avoid costly retrofitting down the line, as well as protecting the value of their property.”
The Green Reward is available on buy-to-let, semi-commercial and commercial properties, offering cashback of between 0.20% and 0.50% on loans for properties with an EPC rating of A, B or C. The better the energy rating, the greater the cashback reward.
“As demand for energy-efficient properties grows, brokers and landlords need to integrate sustainability into their investment approaches. The Green Cashback Reward reflects this trend, providing financial incentives for environmentally conscious investments.
“Landlords benefit not only from cashback but also from lower operating expenses and improved tenant satisfaction.
“For brokers, guiding clients toward sustainable options offers a chance to stand out in a competitive field.
“Embracing sustainability goes beyond meeting regulatory standards; it enhances property value and appeals to eco-conscious tenants.”
The product, which was shortlisted in the NACFB Commercial Lender Innovation category, has been praised within the industry.
Peter Davies, Coreco, said: “My colleague recommended Redwood to me as a specialist lender for semi-commercial deals and I am glad they did. I was impressed with their service, flexibility and considered underwriting approach. I was also delighted to bring my client the benefit of the Green Reward cashback from Redwood. It was a very welcome financial boost for them.”
