Despite the government rolling back on energy efficiency targets for BTL properties last year, it's still on the radar for a large number of landlords ahead of an investment.
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.
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 BTL landlords will buy their next rental property. A quarter (24%) said they would buy as an individual investor with a mortgage, and a further fifth (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.
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, comments: “It’s encouraging to see that BTL 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 BTL 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.”