A quarter of landlords are prioritising energy efficiency when it comes to adding a property to their investment portfolio, according to recent research.
The revelation from the Mortgage Lender comes despite the government’s rollback on energy efficiency targets for buy-to-let (BTL) properties last year, which meant landlords would not get fined if they failed to upgrade their properties.
Landlords who are considering purchasing an investment property are also prioritising monetary aspects such as price (48 per cent), expected rent yield (29 per cent), and long-term investment potential (23 per cent).
This is balanced with other aspects such as an attractive location (29 per cent), good council tax banding (17 per cent ), the property being move-in ready (16 per cent), and inside layout (16 per cent).
The research also asked how BTL landlords will buy their next rental property.
A quarter said they would buy as an individual investor with a mortgage, and a further fifth said they would buy as an individual with cash.
In contrast, 10 per cent said they will buy their next property as a limited company with a mortgage, while 11 per cent plan to buy as a joint investor with a mortgage.
In a similar vein, mortgages continue to be a key priority for landlords amid a tumultuous year for rates.
As such, three out of four (77 per cent) of landlords said that the rate of the mortgage available was an important factor for them when buying a property with a mortgage.
Other factors landlords felt to be important included wanting greater fluidity from lenders such as in the amount they could borrow, the discount on fees, flexibility on criteria, and the support offered by the lender.
Chris Kirby, head of sales, Midlands, South and specialist distribution at the Mortgage Lender, says: “It’s encouraging to see that BTL landlords are continuing to adapt and shift their priorities, even though the government postponed the planned introduction of energy efficiency standards for properties in the private rental sector.
“It shows just how committed many landlords are to staying ahead of the curve and anticipating tenant expectations.”
