Green issues increasingly important for landlords, says lender

Eco issues are increasingly important for landlords, a mortgage lender claims. 

Hodge Bank says a new survey shows 82 per cent of landlords, investors and brokers stated energy efficiency was in the top three considerations, along with broader green credentials about a property, along with its rental yield.

Andy Button, head of investment finance at Hodge, says: “The buy to let market is particularly buoyant right now, with demand continuing to grow throughout the pandemic, and it’s interesting to see how the priorities for landlords are changing when looking to add to their portfolio. 

“While rental yield and potential for capital growth are, of course, top priorities, our research reflects a change in mood of the market, where sustainability and green credentials are becoming ever more important.”

He says landlords and agents must offer choice in sustainable housing options to cater for tenants’ increasingly green interests.

“It’s clear that sustainability will feature more and more in new-build development design.

“More stringent compliance to EPC and an investment strategy more closely aligned to sustainability could actually improve cash flows in the longer term, as tenants might be prepared to pay higher rents in exchange for lower utility costs.”

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