The Mortgage Works is introducing a new pilot scheme aimed at helping landlords prepare for upcoming Energy Performance Certificate (EPC) requirements expected to come into force from 2030. The initiative combines free property assessments with access to reduced-cost borrowing to support energy efficiency upgrades.
The buy-to-let lender, part of Nationwide, will fund 1,000 property assessments carried out by retrofit specialists Eco Approach. The aim is to help landlords understand what improvements are needed to bring their properties up to an EPC rating of C.
Each assessment will provide a clear overview of a property’s current energy performance, how far it is from the required standard, and suggested upgrades along with estimated costs.
Helping Landlords Understand EPC Requirements
According to The Mortgage Works, many landlords are still uncertain about what the forthcoming Minimum Energy Efficiency Standards will require in practice.
The lender’s head of buy to let, Dan Clinton, explained that the assessments are designed to give landlords clearer insight into the work needed to meet future regulations. He added that the combination of free assessments and discounted lending options is intended to reduce both uncertainty and financial pressure.
He also noted that improving energy efficiency could bring additional benefits beyond compliance, including stronger property values, improved rental returns and lower energy bills for tenants.
Uncertainty Around Costs
Research from The Mortgage Works suggests that a large proportion of landlords are unclear about the likely cost of upgrading their properties.
Around 63% said they did not know how much it would cost to reach an EPC rating of C, while 21% estimated that spending could average up to £6,632 depending on the condition of the property.
The lender believes that many of these costs could be covered through its new Energy Efficiency Further Advance products, which are designed to help landlords finance improvements.
Value of Energy Efficient Homes
The lender’s latest buy-to-let research also found a clear link between energy efficiency and property value.
Homes with EPC ratings of A or B were shown to achieve an average price premium of 12.2% compared with similar properties rated D. Meanwhile, C-rated homes achieved a more modest uplift of 3.7%.
This highlights the potential financial incentive for landlords to invest in upgrades ahead of regulatory changes.
Support, Grants and Exemptions
As part of the pilot, landlords will also be informed about possible exemptions, available grants and support options for completing the required improvements.
The scheme is also intended to test demand before a potential wider rollout to all customers.
Awareness Gap Among Landlords
The research also highlights a significant knowledge gap within the buy-to-let sector.
A majority of landlords were unaware of key details surrounding the upcoming regulations, with 67% not knowing that properties will need to meet a minimum EPC rating of C. In addition, 73% were unaware of when the changes are expected to take effect in England and Wales.
Despite this, more than half of landlords said they would welcome support in identifying the most cost-effective improvements, while half also expressed a need for guidance on how to finance the required work.
The findings suggest that clearer communication and practical support could play an important role in helping landlords prepare for the transition to higher energy efficiency standards.
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