Landlords bring forward efficiency works and shield tenants from rising energy bills
Two-thirds of houses in multiple occupation (HMOs) owned by landlords and surveyed by Paragon Bank already hold an energy performance certificate (EPC) rating of 'A' to 'C', putting the sector ahead of the broader housing stock, where approximately half of homes currently meet that standard, according to government data.
The findings come as the industry braces for proposed changes to Minimum Energy Efficiency Standards that would require all rental properties to achieve EPC band 'C' by 2030.
More than a quarter of respondents (28%) said they had already brought forward energy efficiency works in anticipation of those requirements. No surveyed landlords reported properties in the lowest 'F' or 'G' bands.
Paragon's research also found that more than four in 10 HMO landlords are absorbing higher energy bills rather than passing the costs on to tenants through rent increases.
"Energy efficiency is now a core part of how HMO landlords operate," said Louisa Sedgwick (pictured right), managing director of mortgages at Paragon Bank. "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.
"With a large proportion of HMOs already meeting expected requirements, landlords are well placed for future regulatory changes while continuing to deliver good quality, cost-effective accommodation."
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