Q1 Mortgage Newsletter 2024

maintenance from landlords. Inflation has disproportionately affected tenants, with average rents and energy costs having soared. Some instances of damp are likely due to tenants being unable to afford to adequately heat their homes. We know that damp and mould have a significant impact on wellbeing. According to the Parliamentary research briefing, Health Inequalities: Cold and Damp Homes, they can lead to worsening asthma and increase the risk of heart disease. They also impact mental health, with depression and anxiety more common among people living in damp homes. The English Housing Survey reflected this, showing that private renters score lower than owner-occupiers across its range of wellbeing measures. What can brokers do? For many landlords, damp and mould is a recurrent bugbear, demanding their time and money, and potentially negatively affecting the value of their property. The data shows that landlords have made progress on boosting energy efficiency in the PRS, but the improvement trend has stalled, or reversed in other areas. However, you’re well placed to help them. We all have a part to play in improving the quality of rented homes because it indirectly benefits us all. Plus we know that many of our broker partners are landlords themselves. So, where do you start when it comes to supporting landlord clients? 1. Bring energy efficiency into your client conversations. Explain the benefits of improving their property’s EPC rating, preventing damp and mould and making the property cheaper for their tenants to heat, and signpost them to useful information, such as the Tenancy Deposit Scheme’s guide to preventing damp and mould. 2. Give your clients information on any relevant grants they or their tenants could access to fund energy-efficient improvements to their property, particularly if they have tenants in receipt of benefits. Check out the following options: • The Energy Company Obligation (England, Wales and Scotland) • Warmer Homes Scotland (Scotland) • Nest Scheme (Wales) • Affordable Warmth Scheme (Northern Ireland) 3. Complete the CPD-accredited training module about EPC regulation on our BM Solutions Sustainability Education Hub. 4. Speak to landlords about how they can fund any improvements they plan to make to their property to boost energy efficiency or reduce damp problems. Progressing together It’s encouraging to see the improvements landlords have made to the energy efficiency of privately rented homes. More efficient homes are warmer and cheaper to run, so they attract better, long-term tenants who can heat them adequately to prevent damp issues. They can also better hold their value and potentially give landlords access to more competitive mortgage rates. It’s a virtuous circle and an opportunity for you to deepen your relationships with your clients during 2024 and beyond, to discuss the benefits of improving the quality of their rental properties. Here to help Reach out to your local BDM to understand how BM Solutions can support you and your landlord clients to improve the quality of the UK’s rental properties. This information is correct as of December 2023 and is relevant to Birmingham Midshires products and services only. If you do not have professional experience, you should not rely on the information contained in this communication. If you are a professional and you reproduce any part of the information contained in this communication, to be used with or to advise private clients, you must ensure it conforms to the Financial Conduct Authority’s advising and selling rules. Birmingham Midshires is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628. 07 SPRING MORTGAGE NEWSLETTER

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