Houses of multiple occupancy (HMO) landlords lead the way with investment in energy efficient improvements Paragon Bank research reveals, as 66% already achieve an EPC rating of A to C.

Paragon’s landlord survey shows this sector is ahead of the wider housing stock, where around half of homes currently meet this standard, based on government data.

No survey respondents reported properties in the lowest F or G bands.

This progress comes as landlords prepare for proposed changes to Minimum Energy Efficiency Standards, which are expected to require all rental properties to reach EPC band C by 2030.

More than a quarter of landlords (28%) say they have already brought forward energy efficiency improvements in response to these proposals.

At the same time, more than four in 10 say they are absorbing increased energy bills rather than passing these on through higher rents.

Paragon Bank managing director of mortgages Louisa Sedgwick says: “Energy efficiency is now a core part of how HMO landlords operate. Many are already ahead of proposed standards, which reflects a long-term approach to managing their properties.”

“It is also encouraging to see the steps landlords are taking to support tenants with the cost of living. In addition to increasing the value of their portfolios, by investing in more efficient homes and, in many cases, absorbing higher energy costs, they are helping to keep shared housing both sustainable and more affordable.”