Redwood Bank has released data showing that a quarter of landlords who have secured loans from the bank have energy efficient properties.
Redwood Bank introduced its Green Reward scheme last year with an aim to incentivise property owners with assets in the A-C Energy Performance Certificate (EPC) category.
The scheme accounted for 22% of the bank’s volumes and 31% of value, with the average loan 36% higher than non-green rewards products.
The Green Reward is available on buy-to-let, semi-commercial and commercial properties, offering cashback of between 0.20% and 0.50% on loans for properties with an EPC rating of A, B or C.
Tom Worbey (pictured), senior products manager at Redwood Bank, said: “With stricter energy efficiency regulations on the horizon and tenants increasingly demanding comfortable and efficient homes, we wanted to support those landlords who were already hitting the mark by being energy efficient.
“We launched the Green Reward to do exactly that – reward those who were already displaying their eco-credentials and we are delighted to see so many taking advantage.
“Of course, there is more work to do and landlords who future proof their properties now can stay ahead of regulations and avoid costly retrofitting down the line, as well as protecting the value of their property.”
Worbey added: “As demand for energy-efficient properties grows, brokers and landlords need to integrate sustainability into their investment approaches. The Green Cashback Reward reflects this trend, providing financial incentives for environmentally conscious investments.
“Landlords benefit not only from cashback but also from lower operating expenses and improved tenant satisfaction.
“For brokers, guiding clients toward sustainable options offers a chance to stand out in a competitive field.
“Embracing sustainability goes beyond meeting regulatory standards; it enhances property value and appeals to eco-conscious tenants.”
Peter Davies, specialist mortgage adviser at Coreco, said: “My colleague recommended Redwood to me as a specialist lender for semi-commercial deals and I am glad they did.
“I was impressed with their service, flexibility and considered underwriting approach.
“I was also delighted to bring my client the benefit of the Green Reward cashback from Redwood. It was a very welcome financial boost for them.”
