Paragon Bank recorded a strong increase in buy-to-let lending on more energy efficient properties during the first half of its financial year as landlords prepare for new EPC rules in 2030.

Unveiling its half-year results for the six months to 31 March 2026, Paragon recorded £435.7m of new buy-to-let lending on EPC A-C properties, a 7.7% increase compared to the same period a year ago.

EPC A-C properties accounted for 56.4% of buy-to-let lending during the period, compared to 49.9% during the first half of the 2025 financial year.

Overall, Paragon grew its mortgages loan book by 2.9% to £14.1bn during the half-year.  The new buy-to-let mortgages pipeline closed the half-year 8.6% higher at £718.9m, while annualised redemptions remained low at 8.0%.

Overall, Paragon Banking Group recorded underlying profit before tax of £145.7m for the period, with a 3.8% increase in the group’s net loan book.

Commenting on the latest figures, Paragon Bank managing director of mortgages Louisa Sedgwick said: “Landlords are increasingly targeting properties with higher energy efficiency with one eye on the new EPC rules expected to come into force in October 2030.

“We launched our green mortgages six years ago, offering preferential pricing for EPC A-C properties, and have recently relaunched our new build proposition to cater for landlords acquiring new homes.”

The credit performance of Paragon’s buy-to-let assets remained strong, with three-month arrears at 0.50%, lower than the overall performance of the buy-to-let market, with UKF reporting arrears of 0.65% for the buy-to-let sector at 31 March 2026.