View more on these topics

EPCs could pave the way to green loans

JAMES SHERWOOD-ROGERS, MANAGING DIRECTOR, QUEST
JAMES SHERWOOD-ROGERS, MANAGING DIRECTOR, QUEST

With the Energy Performance Certificate surviving the scrapped Home Information Packs, its role has the potential to expand and perhaps become a more integral part of property construction and financing.

Some commentators believe the information in the EPC could be used by lenders to provide a green mortgage loan.

This would offer applicants an additional sum on the mortgage to make environmentally-friendly improvements to the property.

Experts claim the sum loaned would vary depending on the A to G rating of the property and only be provided to the home owner on the completion of an updated EPC, which provides evidence regarding the energy-efficient enhancements that have been incorporated into the home.

The EPC could then be made available to the purchaser’s surveyor so the energy rating and associated recommendations are taken into consideration as part of the valuation, and the information fed back to lenders with the completed report.

This would remove the focus of implementing recommendations from the EPC away from sellers, who are not inclined to spend money on a property they are leaving, and put it on buyers who will have a vested interest in reducing the property’s carbon footprint and utility bills. This will make a positive impact on the environment.

It will certainly be interesting to watch how this develops over the coming months.

Recommended

PAUL SHEARMAN

Check the potential of landlord business

The rental property market is thriving despite or partly because of the economic slowdown. From individuals who rent out second homes through to entrepreneurs, activity is buoyant. That said, overall the market is subdued, with lending flat over the past five quarters. With a market of over 1.2 million buy-to-let mortgages there is an enormous […]

LAST WEEK’S WINNER

“The recurring dream of turning up to work without trousers on finally came true.” ALEX JONESCMG ADVISERS

Who cares?

By Tracey Dickson, marketing consultant There are almost 7 million carers in the UK – that’s around 10 per cent of the population who provide unpaid care for a disabled, seriously ill or older loved one.1 But according to a report from the charity Carers UK, 20 per cent of people providing 50 hours or more of care […]

Newsletter

News and expert analysis straight to your inbox

Sign up