Research shows most landlords fail to reassess energy efficiency ratings after property upgrades

A large number of landlords may be losing out on access to favourable green mortgage rates by failing to update their energy performance certificate (EPC) assessments after making energy efficiency improvements, according to new research from Paragon Bank.
The bank’s study, based on responses from more than 500 landlords, found that 57% had not arranged new EPC evaluations after carrying out upgrades designed to improve energy performance. Without updated EPCs, these landlords may be unable to qualify for green mortgage deals typically available to properties with EPC ratings of ‘A’ to ‘C’.
Paragon conducted the research as part of its latest report on energy standards in the private rented sector (PRS). It found that 28% of landlords who had completed energy efficiency upgrades did obtain new EPCs, which led to improved ratings in those cases. Another 14% reported no change in the rating post-upgrade.
Separate data collected by Pegasus Insight on behalf of Paragon showed that 60% of landlords own at least one property rated EPC ‘D’, while one in four have properties rated ‘E’, ‘F’, or ‘G’. The survey of nearly 900 landlords indicated that 48% of the average landlord’s portfolio would not currently meet the government’s proposed minimum EPC ‘C’ standard.
Meanwhile, research from the National Residential Landlords Association (NRLA) found that 73% of landlords were worried about the 2030 EPC target for existing properties. The same percentage also expressed concern about the impact of the proposed standard on new rental agreements from 2028.
“Our research aligns with government data highlighting how millions of properties will need to be upgraded to meet the proposed new minimum energy efficiency standards,” said Louisa Sedgwick (pictured), managing director of mortgages at Paragon Bank. “As a result, we believe the 2030 target for all rental properties is unrealistic and could exacerbate the undersupply of homes for tenants.
“We’ve responded to the Improving the energy performance of privately rented homes consultation, calling on government to abandon its 2030 target and instead adopt a phased implementation between 2030 and 2035.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.