One in four landlords say that energy efficiency of a property is one of their top priorities when it comes to evaluating potential purchases, according to The Mortgage Lender (TML).
Unsurprisingly, price remains a key factor for 48% of those surveyed, followed by expected rent yield for 29%, long-term investment potential for 23% and location for 29%.
But the fact that energy efficiency ranks so highly is despite the government’s u-turn on energy efficiency rules for BTL properties last year.
The government had been planning to introduce stricter Minimum Energy Efficiency Standards, requiring rental properties in England to have an Energy Performance Certificate (EPC) rating of at least band C.
This had been due to come into force for new tenancies from 2025 and for existing tenancies from 2028.
However, the changes were scrapped, meaning landlords need only comply with the current minimum EPC rating of band E.
TML’s research also looked at how BTL landlords plan to buy their next rental property.
It found that 24% plan to buy as an individual with a mortgage and 22% as an individual investor with cash.
Meanwhile,10% say they will buy as a limited company with a mortgage and 11% as a joint investor with a mortgage.
The survey also revealed that 77% of landlords say that mortgage availability is an important factor when choosing which property to buy.
TML head of sales for the Midlands, South and specialist distribution Chris Kirby says: “It’s encouraging to see that BTL landlords are continuing to adapt and shift their priorities, even though the government postponed the planned introduction of energy efficiency standards for properties in the private rental sector.
“It shows just how committed many landlords are to staying ahead of the curve and anticipating tenant expectations.
“As lenders, we similarly want to offer greater flexibility in order to best support BTL landlords, whether this comes in the form of extending our product range or working with brokers to offer the best options for their customer base.”
