Compliance with Energy Efficiency in the Buy-to-Let market
Molo, the UK’s first fully digital mortgage lender, has partnered with Propflo to help landlords promote energy efficiency and ensure compliance. An issue that has become even more important with the expected introduction of new energy standards by the Labour government.
The project aimed to provide a seamless solution for lenders and landlords to identify and carry out the necessary upgrades to improve both the sustainability and value of their properties and demonstrated strong commitment that provides a clear path forward.
Project delivery
The project was centred around engaging a targeted pool of Molo’s landlord customers whose properties were below the EPC rating of C – an EPC rating required under the latest legislation. Using Propflo’s PortfolioAudit tools, the partnership identified properties at risk of non-compliance and targeted these landlords through a series of personalised email campaigns.
The emails informed landlords of the latest energy efficiency standards and anticipated changes and provided access to Propflo’s GreenVal tool which was co-branded with Molo. The tool allowed users to view individual energy efficiency recommendations, receive quotes from national suppliers and manage their property upgrades through Propflo’s HomeHub.
The campaign consisted of a general awareness email sent to a broad group of landlords, raising awareness of potential non-compliance and providing insight into energy efficiency.
Targeted follow-up emails then provided more specific details about grants and the financial viability of improvements, encouraging greater engagement with the GreenVal tool.
The GreenVal tool
Engagement and path to compliance
The campaign saw high engagement rates across all phases, demonstrating significant interest in energy efficiency improvements:
- Engagement: The email campaigns achieved open rates of 75%, exceeding typical benchmarks and the GreenVal tool’s click-through rate (CTR) was 3% on average, indicating that landlords were interested in learning more about the energy upgrades available to them.
- Targeted messaging: Molo created a number of tailored messages using analysis from the PortfolioAudit tool. The highest engagement of these groups were those being potentially grant eligible with a CTR of nearly 8%.
- Portfolio insights: The platform identified that 95% of Molo’s landlord portfolio had the potential to reach at least an EPC rating of C, with many properties eligible for grants, making the upgrades more financially feasible.
Some future challenges have been identified, such as the high percentage of properties relying on gas boilers, presenting barriers to achieving Net Zero targets. However, the positive engagement metrics indicated a strong foundation for future success.
Types of heating show the huge challenge of getting to net zero
Most common improvements
Expanding impact and ensuring compliance
Molo will continue to leverage the Propflo platform for ESG reporting and use its insights to support landlords in improving their properties. As new energy efficiency standards are confirmed, Molo plans to re-engage its customers to help them meet compliance requirements. With this ongoing partnership, Molo is well-positioned to play a leading role in driving energy efficiency in the buy-to-let market, ensuring that both landlords and the environment benefit from long-term, sustainable solutions.
Create additional revenue by supporting energy efficiency
About Molo
Founded in 2018, Molo is transforming the UK mortgage industry through its fully digital, real-time platform, originating over £300 million in mortgage loans. In 2023, Molo was acquired by ColCap, an Australian lender, which strengthened its capabilities and expanded its reach. Molo’s partnership with Propflo began in 2023 as part of its commitment to providing landlords with cutting-edge solutions for managing their properties more sustainably and efficiently.
About Propflo
Propflo is an award winning data-driven AI platform that supports lenders and property businesses to comply with energy efficiency regulations, meet their climate targets, and then support their customers in their wider ownership journey.
Propflo was founded by proptech entrepreneur Luke Loveridge and geospatial and risk data scientist Dr Daniel Moyo. It also has world leading AI expert Mike Tipping as an advisor.
www.linkedin.com/company/propflo
Contacts:
Felix Schraff
comms@propflo.co.uk
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