Landlords can boost the price of their properties and see growth in rental income through green retrofitting, according to The Mortgage Works’ latest quarterly buy-to-let report.

But with more than one in eight (16%) landlords surveyed not willing or able to invest in their properties – despite a 2030 deadline for all rental properties to have an Energy Performance Certificate (EPC) rating of C or above - The Mortgage Works is calling on the government for greater incentives. Those surveyed aged 55 and above are most likely to express doubt over whether they can meet the deadline, with just under four in ten (38%) saying this was the case.

The Mortgage Works wants to see greater incentives for landlords to make changes. It would like to see grants given to improve properties that are the hardest to retrofit, while enabling retrofitting costs to be offset against rent for income tax purposes. This, alongside benefits realised through better house prices and rental income, would make it more financially viable for landlords, while also helping to reduce the energy bills for tenants and assisting the UK to reach its wider net-zero targets.

Dan Clinton, head of buy to let at The Mortgage Works, comments: “Our analysis shows there can be long-term gain with green retrofitting through increased property value and improved rental yields. But it will be a hard slog for many landlords to meet this ambitious timeline to bring their homes up to spec, particularly those who have had to absorb higher mortgage rates and bigger tax bills in recent times.

“We need government to step up and provide the necessary support for landlords if they expect that change to happen. As history shows us, positive change can be painstakingly slow when there are a lack of incentives. Alongside this, there needs to be an effective framework for energy efficiency including clarity around the future of EPCs, information on energy efficiency improvements and skills training to ensure there is a work-force able to deliver green improvements at scale. The time to act is now – we must consider how we make it as appealing as possible for landlords to pour investment into their properties. Anything less will fall flat.”