With around 22% of the UK’s carbon emissions coming from energy use in residential housing, the property market is becoming an area of focus for the government’s net zero agenda, and this includes the buy-to-let sector.

Minimum EPC ratings for rented properties shifting from E to C by 2025 under likely new regulation could soon force landlords to make improvements. Yet, as the drive towards net zero picks up speed, much confusion still surrounds some of the changes and measures landlords can take advantage of to improve their home’s energy efficiency.

This is where intermediaries can play an important role in helping their landlord clients.

For example, the chancellor’s recent decision to remove VAT on green home improvements means that now is an excellent time for landlords to consider making upgrades. Not only will this make their properties better for the environment, but it could benefit their wallets and, importantly, tenants’ prospects too.

In sharing this, intermediaries will build stronger, closer relationships with their landlord clients.

Here are some other ways intermediaries can help:

Little things that make a difference

Knowing which energy efficiency measures represent the best value versus impact can help landlords understand the most effective changes they can make. Even small insulation tweaks can have a big effect on EPC ratings and energy bills.

The Energy Saving Trust estimates that something as simple as fitting a hot water cylinder with an insulating jacket could save the average property around £35 in heating costs.

It might not sound like much, but all these small changes can add to a significant reduction in heating bills – and that could make a landlord’s property an attractive option for prospective tenants at a time when energy bills are rising alongside the cost of living.

Help clients avoid the pitfalls

Intermediaries can also help their clients understand some of the pitfalls they may face when improving a property’s EPC rating.

There are many more costly, but effective measures landlords can implement to improve energy efficiency. However, they must consider the full spectrum of changes required to ensure these costly changes are as successful as possible.

For example, fitting double or triple glazing is often a great way of reducing heat loss – 18% of heat loss occurs through windows alone. Yet, the effectiveness of these changes could be drastically reduced if a landlord doesn’t ensure new fittings are also draught proofed.

Understand the long term-benefits

Of the many measures a landlord can take to improve their property’s EPC rating, some require significant initial investment, such as the installation of new windows or ground source heat pumps.

Being able to help clients understand the long-term benefits of these upgrades is vital.

According to the Energy Saving Trust, installing a ground source heat pump could cost as much as £19,000. Yet, it’s estimated that in certain properties – namely those heated via electric heating systems – it could save an average of £1,000 on an energy bill. That’s a big saving for potential tenants, and something which could drastically improve tenant prospects.

Flag the help at hand

Intermediaries will be well versed in the importance of knowing which lenders offer certain products that could help their clients’ mortgage needs, and this is just as important when it comes to providing guidance to landlord customers on energy efficiency improvements.

In fact, knowing of the green mortgage schemes that are offered by lenders will help your clients save money while making their property better for the environment.

At Coventry, when taking out a new mortgage, clients can apply for our Green Together Reward, which offers eligible customers £500 in return for carrying out qualifying work that aims to improve a property’s energy efficiency. It covers measures such as fitting double glazing, installing insulation or setting up solar panels.

By building up a knowledge of energy efficiency measures landlords can put in place and understanding some of the support offered through lenders and the government, intermediaries can position themselves as experts on green lending options and strengthen their relationships with landlord clients.

Imparting this knowledge to landlords who are considering making changes will not just help them ensure their portfolio is better for the environment, but make it a far more attractive offering to prospective tenants in the years to come.

Coventry for intermediaries head of intermediary relationships Jonathan Stinton