Secure Trust Bank has launched a new loan to help landlords improve the energy efficiency of their residential properties.

The EPC Improvement Loan is available to the bank’s existing mortgage borrowers. It’s been designed to help residential landlords retrofit their rental properties to make them more energy efficient and boost their Energy Performance Certificate ratings.

The new product is an extension (top-up) to existing loans, providing fixed sums of £6,500 for property currently rated EPC D and £13,000 for EPC E rated properties. The funds can be used by landlords to boost the energy efficiency of the rental properties.

New rules coming

The products has been launched in response to an ongoing government consultation, which proposes to tighten energy efficiency in rental properties.

It’s expected that from 2025, only properties with an EPC rating of C or higher will be able to be let to new tenants. From 2028, all existing rental properties will need to reach an EPC C rating.

Andy Clutterbuck, regional head (Midlands and South) at Secure Trust Bank, said: “There has been increasing commentary around the need to improve the energy efficiency of buildings for a long time now. Given the energy and cost-of-living crisis, this has only served to ramp up the noise and push the government to act. The consensus across the lettings market is that stricter rules may well come into force from January 2025.

“Landlords need to start thinking about how they can get ahead now. That’s why we’ve launched this EPC Improvement Loan to help our customers with properties rated D or lower, so they can seal a loan now and start remedial works as soon as possible.”