Scheme incentivises sustainable investments as landlords prepare for stricter energy regulations
Nearly a quarter of landlords securing loans through specialist lender Redwood Bank are leveraging its Green Reward cashback scheme, highlighting a growing focus on energy-efficient properties.
The Green Reward programme, launched late last year, provides cashback incentives for residential and commercial properties with an energy performance certificate (EPC) rating of ‘A’ to ‘C’. Since its introduction, the product has accounted for 22% of the bank’s loan volumes and 31% of its loan values. Loans associated with the Green Reward are, on average, 36% larger than those for non-green products, according to the bank.
Tom Worbey (pictured), senior product manager at Redwood Bank, said the scheme was designed to recognise landlords who have already invested in energy efficiency.
“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,” Worbey said. “We are delighted to see so many taking advantage of the Green Reward.”
The cashback offering ranges from 0.20% to 0.50% of the loan value, with higher rewards for better EPC ratings. The programme is available for buy-to-let, semi-commercial, and commercial properties, providing financial incentives for environmentally conscious investments.
The product also offers brokers a chance to stand out in a competitive market by guiding clients toward sustainable investments. Worbey noted that energy-efficient properties often deliver benefits beyond compliance, including reduced operating costs, improved tenant satisfaction, and enhanced property value.
“Landlords who invest in energy efficiency today can stay ahead of regulations, avoid costly retrofitting later, and protect their property’s value,” he added.
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