Call for financial help for landlords to carry out energy improvements

Rightmove says that just 40% of homes for sale and 50% of homes for rent on its platform currently have an energy performance certificate (EPC) rating of C or above.

The rest have a rating of D or below and this has led the firm to urge more government incentives to encourage landlords and homeowners to invest in green improvements.

These include fitting insulation, double glazing, renewable energy sources and electric car charging points.

The incentives being proposed by Rightmove include:

• Stamp duty rebates for buyers who make green upgrades within a few years of purchase
• Better mortgage deals for energy efficient homes
• More grants or tax benefits for green technology
• More support for innovation and implementation of green solutions.

Rightmove says these measures would not only help the UK meet its climate targets, but also benefit consumers by saving them money on their bills and increasing the value of their properties.

‘Current incentives aren’t yet big enough’

Rightmove’s director of property science, Tim Bannister, said: “It’s clear that the current incentives aren’t yet big enough to make people sit up and take notice, and even the incentives that do exist aren’t easy to find out about.

“The benefit of making green improvements can be seen in the overall premium that a seller can command.

“Of course, improvements that make a home more energy efficient could also mean the condition improves, such as installing new windows, and so owners will be weighing up the cost of improvements versus the return they can get when they come to sell.

“But the end result of making improvements is not just a refurbished home worth more money, it’s also a greener home.”

Highlights what it calls a ‘landlord conundrum’

Rightmove also highlights in its Greener Homes report what it calls a ‘landlord conundrum’ because rising energy bills has impacted on the type of rental homes that tenants are looking for.

It says that 19% of tenants say a home’s energy efficiency is a big factor when choosing where they want to live.

And the conundrum for landlords is that there are no plans in place currently for rental properties in England and Wales to have a minimum Energy Performance Certificate (EPC) of C.

Comments from the Housing Secretary Michael Gove last week also point to a delayed deadline being imposed.

As a result, landlords are waiting for clarity before carrying out EPC improvements – and some are looking at selling up, rather than improving.

Incentives to make green improvements to rental properties

The property platform says financial incentives to make green improvements to rental properties should be considered – without any costs being passed onto tenants.

Also, Rightmove says that 40% of smaller portfolio landlords are more likely to sell up and leave the private rented sector than larger portfolio landlords are.

There’s also a trend of landlords ‘shunning’ poorly rated properties when buying as an investment.

The survey also found that 33% of landlords with a lower EPC rating will sell rather than improve them – that’s up from 20% last year.

‘Incentivisation and education is key’

Mr Bannister said: “In order to shift the demand to greener homes, incentivisation and education is key.

“The price of ‘cosy’, or a better insulated home, is hard to quantify until people see how it can change how they live for the better, and they need to be able to afford it.”

He added: “Adoption at scale will take time and there are clearly areas that need more attention than others.

“Houses are much more energy inefficient than flats, and the sales market is lagging behind what we’re seeing in the rental market.

“The challenge right now is that there are not enough suppliers and equipment for the greenest option to be the most affordable option for homeowners and landlords.”

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