Want to add thousands to the value of your rental property and watch your rental income soar? Going green is the answer, according to the latest research.

A new report by The Mortgage Works reveals that landlords who invest in energy-efficient upgrades could be sitting on a goldmine. But there’s a catch – a looming deadline and a lack of government support could leave some landlords out in the cold.

Green Homes = More Cash: The Proof is in the Prices

How much extra cash are we talking about? A whopping £19,500! That’s the potential price premium for a buy-to-let property with a top-notch energy efficiency rating of A or B, compared to a property with the average rating of D.

Even bumping up your rating to a C could mean an extra £6,200 in your pocket. And it’s not just about the sale price; your rental income gets a boost too. Those A and B-rated properties can command a 7% higher rent, which translates to an extra £70 per month based on average rents in England.

North England Leads the Pack in Green Property Values

Location, location, location! The report shows that landlords in the North of England are sitting pretty, enjoying a 15% price premium for those A and B-rated properties. Meanwhile, London landlords can charge 12% more in rent for energy-efficient homes.

Time is Money: The 2030 Deadline Looms

But by 2030, all rental properties must have an Energy Performance Certificate (EPC) rating of C or above. That’s just around the corner!

While boosting your property’s value and rental income is tempting, many landlords are understandably daunted by the upfront costs of retrofitting. The Mortgage Works survey revealed that over 16% of landlords are unsure if they can meet the 2030 target, especially those aged 55 and over.

Landlords Cry Out for Government Support

The Mortgage Works is calling on the government to step up and provide the financial muscle landlords need to make this green dream a reality. They’re proposing grants for difficult-to-retrofit properties and allowing landlords to deduct retrofitting costs from their rental income tax.

The Bottom Line: Green Investments Pay Off

The message is clear: investing in energy efficiency is a win-win for landlords, tenants, and the planet. The Mortgage Works report shows that landlords can recoup their investment in as little as five years through higher rents and property values. But with the 2030 deadline fast approaching, the time for action is now!