Richard Sexton, business development director at e.surv, said lenders would need to change their lending criteria and underwriting processes on certain types of sustainable housing currently considered sub-standard by a large number of UK lenders.
He said: “We will need to see a change in lenders’ attitudes to make it easier for people with sustainable homes and constructions, such as a glass roof, to be considered mortgageable.”
Yvette Cooper, Minister for Housing and Planning, recently challenged the UK housing industry to raise the standards of construction and help reduce carbon emissions from new homes. This, coupled with the introduction of Energy Performance Certificates (EPCs) due to take effect in June 2007, has shown the government hopes the public will become more aware of energy efficiency matters.
Sexton commented: “Once EPCs come into play, lenders will either offer green mortgages wholeheartedly, seeing them as a growth opportunity, or will eventually lead into them anyway as they will not want to have a gap in their ranges.”
Mary Riley, managing director at Advance Flexible Self Build Mortgage Ltd, said: “There are a number of lending institutions that are comfortable to lend on environmentally friendly and sustainable housing projects, either self-build or multiple development projects. The comments of the valuer are most important for lenders when assessing whether the property recommended is suitable security for lending. It is vital that valuers and lenders understand the type of construction ensuring an informed lending decision is made.”
Riley said the volume of sustainable housing projects was likely to increase in the future, as public awareness of different types of construction continues to rise and lenders become more comfortable in the sector.
