HMO landlords are accelerating investment in improving the energy efficiency of their properties, while supporting tenants with rising costs according to Paragon Bank.
A survey of landlords found that 66% of HMOs already have an EPC rating of A-C, placing the sector 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, requiring 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, many landlords are taking steps to protect tenants from rising household costs.
More than four in ten say they are absorbing increased energy bills rather than passing these on through higher rents.
“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,” said Louisa Sedgwick, managing director of mortgages at Paragon Bank (pictured above).
“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.”
