The Intermediary – September 2025 - Flipbook - Page 11
BUY-TO-LET
In focus
One of the still-to-be-confirmed aspects of
carry out the necessary changes. The question
the MEES consultation is the spending cap
also arises as to whether it should be the
landlords will face. The Government has floated
responsibility of lenders to fill the gap left by a
a £15,000 per property limit, with a possible
lack of Government support.
lower affordability cap of £10,000 for certain
Howard Levy, director at mortgage broker SPF
properties. The Government’s own modelling
Private Clients, says: “Green mortgages mainly fit
suggests most properties will need between
on new-build properties rather than older stock,
£6,100 and £6,800 of investment to meet the all-
and even then the relatively small difference in
important C standard.
Given these potential costs, the remortgage
market would seem the obvious choice for all but
the most cash-rich landlords looking to fund the
necessary upgrades.
Grant Hendry, director of sales at Foundation
Home Loans, says: “We’ve seen demand for
rate is not a very large incentive for landlords to
aim for when it can cost tens of thousands to get
properties to the standard required.
“If lenders and the Government are serious
about pushing landlords to spend money on
getting their properties to a ‘green’ level, then
more help is required.
green BTL products grow steadily, and it’s clear
"Cost is a real challenge – the proposed cap of
that both landlords and brokers are now really
£15,000 seems high. The Government may want
engaging with them.” This offers free EPC
to consider a tax break for landlords who have
assessments alongside cashback for upgrades.
improved energy efficiency.”
“When we first launched our green range, it
Levy believes the sector needs more creative
took a while to build traction – landlords weren’t
solutions, adding: “There are more innovative
always sure what it meant for them, and brokers
‘green’ products in the residential space, with the
were still getting to grips with how to position
BTL sector playing catch-up.
the products,” he adds.
“Fast forward to today and over 20% of our
mortgage applications are green products.”
Green limitations
“A minor reduction in rate is not much of an
incentive for clients. They would be better served
by a green product that offers funds to improve
a property which is added to the mortgage. This
will mean that work can be done to achieve the
In the absence of large-scale Government
improved property, hopefully also increasing its
funding to help landlords make the upgrades,
value. The other option would be something like
there are limits as to how much green BTL
a mortgage holiday for a few months while works
mortgages can actually incentivise landlords to
are done to improve a property.”
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"Technically that spider plant offsets 0.0002% of our emissions"
September 2025 | The Intermediary
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