OSB Group has announced a package of measures to support buy-to-let (BTL) landlords looking to improve the sustainability of their investment properties.

The specialist lender confirmed it is to launch a £50m Landlord Leader Fund in 2023, along with products and partnerships to support landlords in the transition to energy- efficient properties.

A report from OSB Group, which comprises Precise Mortgages, Kent Reliance for Intermediaries and InterBay, revealed that 44% of brokers believe the biggest challenge facing their landlord clients today is complying with new environmental requirements, while landlords themselves cited this as their second biggest concern after tenant affordability due to the rising cost of living.

The research also indicated that professional landlords, who derive their main income from lettings, were more likely to already be upgrading their property portfolios to make them more environmentally-friendly, and are far more positive about the future of the BTL sector than their part-time counterparts. It also discovered that both brokers and landlords were looking to lenders to offer more than the green financing currently on the market to fund property improvements.

In light of these findings, OSB Group’s package of measures to support landlords includes the £50m fund to support the specialist lender’s existing landlords in transitioning their properties to an Energy Performance Certificate (EPC) rating of C or above in 2023. OSB Group is also launching a new product range next year, delivered through the Landlord Leader Fund, with accommodating LTVs and ICRs during refurbishment, to improve the property value and appeal to tenants.

OSB Group is to also introduce a redesigned underwriting process for existing landlords, and will launch new partnerships with tax specialists who can provide advice and guidance on tax planning for part-time landlords looking to professionalise, including incorporating as a limited company and the treatment of qualifying capital expenditure.

OSB Group group chief executive, Andy Golding, said: “The time has come for the private rented sector to seriously consider what is next. We are on the precipice of change which will create significant benefits for tenants, but at what cost?

“There is an opportunity for the industry to rise to this new challenge and help support both professional and part-time landlords to ensure the industry thrives and continues to focus on its tenants.

“OSB Group is proud to partner with and support brokers, landlords and tenants across the industry and hope that the measures we plan to implement over the next couple of years will continue to drive positive, tangible change across the industry. We call on other industry participants to consider more actions that need to be taken to ensure the right support structures are in place.”

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