25% of landlords are prioritising energy efficiency when it comes to adding a property to their investment portfolio, according to research from The Mortgage Lender (TML).
This comes despite the government’s rollback on energy efficiency targets for buy-to-let properties last year, which meant landlords would not get fined if they failed to upgrade their properties.
Landlords who are considering purchasing an investment property are also prioritising monetary aspects such as price (48%), expected rent yield (29%), and long-term investment potential (23%). This is balanced with other aspects such as an attractive location (29%), good council tax banding (17%), the property being move-in ready (16%), and inside layout (16%).
The research also asked how buy-to-let landlords will buy their next rental property. 24% said they would buy as an individual investor with a mortgage, and a further 22% said they would buy as an individual with cash. In contrast, 10% said they will buy their next property as a limited company with a mortgage, while 11% plan to buy as a joint investor with a mortgage.
In a similar vein, mortgages continue to be a key priority for landlords amid a tumultuous year for rates. As such, 77% of landlords said that the rate of the mortgage available was an important factor for them when buying a property with a mortgage.
Other factors landlords felt to be important included wanting greater fluidity from lenders such as in the amount they could borrow (76%), the discount on fees (72%), flexibility on criteria (72%), and the support offered by the lender (70%).
Chris Kirby, head of sales – Midlands, South & specialist distribution at The Mortgage Lender, said: “It’s encouraging to see that buy-to-let 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 buy-to-let 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.”