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A greener housing market for all

At BM Solutions, we're supporting the move to a sustainable housing market.

We need to reduce the carbon emissions from building and heating our homes to tackle climate change and reach the government's 'net zero by 2050' target.

All your clients will need to consider the energy efficiency of their property over the next decade, but landlords are some of the first to have already faced specific rules on this.

England and Wales

The government wants to make homes in the private rented sector more energy efficient.

In England and Wales, landlords can only let property with a minimum Energy Performance Certificate rating of E (unless they've registered an exemption).

If your landlord client has a property that doesn't meet the energy efficiency standard, or they haven't registered an exemption, they could:

  • Be prevented from letting out a property and lose their rental income.
  • Be fined up to £5,000.
  • Struggle to remortgage their buy-to-let property. Mortgage lenders, including BM Solutions, now ask for evidence of the EPC rating of your client's rental property.

There's a 'cost cap' of £3,500. This cap means landlords are only required to spend up to £3,500 to boost their property's energy efficiency. If it still doesn't meet the E-rating requirement they can register an exemption.

In line with current rules, BM Solutions will only lend on private rented properties with a minimum EPC E-rating, or registered exemption. This applies to buy-to-let and let-to-buy mortgages (product transfers and transfers of equity are exempt).

We are constantly reviewing our criteria to ensure they're fit for purpose and will be keeping a close eye on how any proposed changes may affect our criteria in the future.

Scotland and Northern Ireland

The rules in Scotland and Northern Ireland are different.

Privately rented properties need a valid EPC certificate, but there's no minimum rating.

There are currently no proposals to change this in Northern Ireland.

In Scotland, the Government proposes that landlords should meet a minimum energy efficiency standard by 2028 by making improvements from a prescribed list, where relevant to their property.

At BM Solutions we'll keep brokers up to date with any rule changes and give you the borrowing solutions you need to support your landlord clients.

BM Solutions will only lend on private rented properties with a minimum EPC E-rating. This applies to buy-to-let and let-to-buy mortgages (product transfers and transfers of equity are exempt).

We are constantly reviewing our criteria to ensure they're fit for purpose and will be keeping a close eye on how these proposed changes may affect our criteria in the future.

More sustainable articles

Read our Step-by-step guide to supporting your clients with EPC changes >

Signpost your landlord clients to our consumer website where they can read about EPC regulation >

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