Redwood Bank is rolling out a Green Reward cashback offer aimed at portfolio landlords with energy-efficient properties. The initiative will provide cash refunds up to 0.50% of the loan value for any new loans on properties that have achieved top-tier Energy Performance Certificate (EPC) ratings of A-C.
Gary Wilkinson, CEO and co-founder of Redwood Bank, said: “Although the government’s plans to impose minimum EPC standards have been halted, there is growing pressure on landlords to make their properties more energy efficient. We want to be able to reward those customers who have attained the highest standards.”
The cashback rates are structured according to the property’s EPC rating. A-rated properties will receive a cashback of 0.5% of the loan value, B-rated properties 0.4%, and C-rated properties 0.2%.
Wilkinson elaborated on the initiative, stating, “The cashback will provide those landlords, looking for a new loan, who are energy-conscious, but are not yet at the most energy-efficient level, an incentive to attain an improved EPC rating. We want to support those customers who have completed energy efficiency improvements and have the highest ratings of A-C.”
He added: “We feel that in the current economic climate, receiving a cash lump sum would enable customers to be able to put this to immediate use as they see fit for their business. In some cases, the reward may aid customers looking to improve the EPC ratings of other properties in their possession.”
The bank’s move comes after Prime Minister Rishi Sunak recently withdrew plans to impose a minimum EPC rating of C for all new tenancies from April 1st, 2025, up from the current minimum rating of E.
The Green Reward cashback offer aligns with Redwood Bank’s history of supporting small and medium-sized enterprises (SMEs). “We have always supported SMEs and this is just another way we can help alleviate some of the pressures businesses are currently facing,” Wilkinson concluded.
