EPC refurbs will drive landlords to use bridging loans

Refurbishments and energy efficiency improvements are expected to drive the bridging loan market in 2025, according to Octane Capital’s analysis of EY Bridging Report data. While refurbishment remains the top reason for bridging finance, its popularity has declined from 50% in 2021 to 33% in 2024. Octane forecasts a rebound due to cheaper borrowing costs, aided by recent and anticipated base rate cuts by the Bank of England. Landlords are incentivized to enhance Energy Performance Certificates (EPCs) to meet Labour’s proposed 2030 deadline for privately rented homes to achieve a rating of C, lowering both monthly energy bills and improving property affordability.