Paragon Bank is urging the government to abandon its current plans for EPC reform in the PRS, instead calling for a phased approach.
The government is currently consulting on plans to reform energy performance and efficiency standards in the PRS.
This includes mandating EPC standards of C ratings and higher among PRS, with 2030 as a minimum target.
Paragon has argued this timeframe is too short and could lead to landlords exiting the sector.
Instead, the lender is pushing for a phased approach, with the 2030 target only staying in place for new tenancies.
Paragon is calling for targets of 2033 and 2035 for extended tenancies and all tenancies, respectively.
In addition, the finance provider has called for other measures to be introduced and support for landlords in how they upgrade their properties.
This includes reverting to the originally proposed maximum investment cap of £10,000 with a seven-year exemption, and introducing financial measures such as the Warm Homes Grant.
“We support the government’s Net Zero target and understand the need for strengthening policy and regulation to drive climate action, but we would strongly urge that a longer term and more balanced approach is taken to allow the retrofit supply chain to grow,” said Louisa Sedgwick, managing director of mortgages at Paragon Bank (pictured above).
“Increasing the delivery timeline and maintaining flexible exemptions allows for a smoother transition to EPC A-C in the PRS, without exacerbating the demand and supply imbalance, which is already expected to grow due to forecast population growth and demographic changes.”
