Glenhawk has launched its first sustainability incentive, offering an end-of-term discount for those borrowers undertaking light or medium refurbishment who improve the EPC rating of a property.
The borrower can enjoy a discount of up to 0.25% if improving to an EPC of C, or 0.50% for a B or above.
The incentive has been launched against a backdrop of stricter regulation regarding minimum energy efficiency standards affecting the UK residential sector. It will be available until 31 May 2023 across Glenhawk’s unregulated refurbishment product range, for residential assets and commercial to residential conversions.
Government regulation is expected to require landlords to evidence their residential properties achieve a rating of C or higher by 2025 for any new rentals and all private rentals by 2028. Currently, 56% of properties, including 2.4 million privately rented homes, in England have an EPC rating below C. Compliance with minimum rating requirements will be essential for landlords and investors seeking to maximise capital and rental values at the point of letting or sale.
Despite the ongoing volatility impacting UK real estate, Glenhawk enjoyed a record month of lending in March across its unregulated and regulated bridging products, along with a record number of new applications.
Michael Clifford, commercial director at Glenhawk, said: “The UK has the oldest housing stock in Europe, which poses a significant challenge for landlords and property owners. Given real estate’s well publicised carbon footprint and the UK’s ambitious net zero targets, lenders like ourselves have an obligation to support borrowers in improving the energy efficiency of their properties.
“Aligned with our institutional backers, this is just the latest step on our sustainability pathway, with a more formalised product offering targeted for later this year.”
