The Intermediary – May 2025 - Flipbook - Page 47
BUY-TO-LET
Opinion
temperature
market
The rules above rely on EPC
ratings, yet the definition of what
constitutes an EPC rating is still under
consultation with the Government,
which has promised an improved,
more detailed Home Energy Model
to assess a home’s Minimum Energy
Efficiency Standard.
The plans include introducing
a new, more comprehensive set of
metrics for EPCs to evaluate the
energy performance of buildings
based on fabric performance, smart
readiness, and the efficiency and
emissions from the heating system.
The final rules, though, are still to
come – the consultation only closed
in early May, yet the Government
has commied to implementing
them alongside the Future Homes
Standard in 2026.
Lenders are facing a tricky balance
of having to prepare without knowing
quite where the boundaries will be.
We have been engaged in a number of
projects with lenders, largely on buyto-let (BTL) lending, though with
some crossover into residential
mortgages, to identify what
the potential risks are,
the scale of those risks
and how to start to
manage them.
In doing so,
we are seeing
a number of
challenges
that are
common
across
the
market. There are also commercial
opportunities, with some parts of the
market more inclined to explore these
sooner rather than later. Yet there is
also reticence in some lenders to invest
heavily in change before it’s known
what change is needed.
Comprehensive data
Given our own commitment to
supporting lenders with this and
other valuation risks they may be
increasingly exposed to, we have
commissioned an independent
research project to assess where the
market is on this topic.
The results, still being compiled,
offer compelling insights into the
range of approaches lenders are
taking. The research has initially
covered the private rented sector
and buy-to-let lenders, given the
imminence of net zero compliance
deadlines. Having spoken to a wide
range of stakeholders, C-suite
executives and credit and climate risk
specialists within building societies,
banks and non-bank lenders, we are
expecting to be able to share the final
report with interested parties at an
in-person event we are holding in
early June.
As many of you will no doubt have
spoed, the timing is fortuitous.
Along with our parent company in the
US, CoreLogic has just undergone a
major rebrand. We are now Cotality,
a name that reflects our commitment
to collaboration and connectivity
both internally and with our partners
and clients.
The business is focused on
delivering comprehensive data and
insights across the entire property
ecosystem, based on intelligent and
responsive analysis coupled with the
expertise of our team.
Clients can expect the same great
service, but with greater clarity on the
Lenders are
facing a tricky balance
of having to prepare
without knowing
quite where the
boundaries will be.
We have been engaged
in a number of
projects with lenders,
largely on buy-to-let
lending, though with
some crossover into
residential mortgages,
to identify what the
potential risks are”
potential of property data, solutions
and services across their sector and
the wider property ecosystem, as well
as developing new thinking in line
with the rapidly changing demands on
those operating in the various sectors
that make up our market.
As such, we’re looking forward
to June’s event, the first in a series
designed to stimulate thinking,
sharing experience and insights from
across the market to support a beer
future for us all. ●
May 2025 | The Intermediary
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