Landlords could be missing out on lower green mortgage rates by not undertaking new energy performance certificate (EPC) assessments following energy efficient upgrades to their properties, Paragon Bank reveals.

A survey by Paragon Bank found that almost six in 10 (57%) landlords who have undertaken energy efficiency upgrades to their properties haven’t commissioned new EPC assessments after the work is complete.

The bank says this means that a significant proportion could miss out on the preferential pricing on offer when mortgaging properties with EPC ratings of A to C.

Paragon research also found that over a quarter (28%) had their properties reassessed after making energy efficiency upgrades, improving their EPC ratings.

Meanwhile, 14% found that their properties’ EPC rating stayed the same.

Separate research, undertaken on behalf of Paragon by Pegasus Insight, shows that six in 10 landlords own a property with an EPC rating of D and a quarter have a property rated E, F or G.

The survey of nearly 900 landlords found that just under half (48%) of the average landlord’s portfolio does not meet EPC of ‘C’ or above, the new standard proposed as part of a recent Government consultation on private rented sector (PRS) minimum energy efficiency standards.

Paragon Bank managing director of mortgages Louisa Sedgewick says: “We were one of the first lenders to launch green mortgages, offering lower rates for properties with EPC ratings of A-C, incentivising landlords to purchase homes with better energy efficiency.”

“These rates are also available on remortgages so we’d encourage landlords to reassess their properties following any energy focused upgrades because they could be eligible to take advantage of lower pricing.”

Earlier this month, Paragon Bank called on the government for a phased introduction of minimum energy standards for private rented properties to limit disruption to a rental sector already under huge pressure.