Landlords in the private rented sector have driven a 165% increase in the number of homes with an Energy Performance Certificate rating of A to C in the past decade, as part of a wider improvement of standards across the sector, Paragon Bank analysis has found. 

Government data reveals 1.925m rental properties in England have an EPC rating of A-C, an increase of 1.2m compared with 2011, with the sector boasting a higher proportion of homes in the bracket compared to owner-occupation. 

Paragon’s new report, Raising the standards of privately rented property, highlights that 44.5% of PRS properties are rated A-C, compared with 42.9% in the owner-occupied sector. 

Landlords have been investing in homes that benefit from increased energy efficiency in anticipation of proposed Government legislation on minimum A-C requirements, as well as cheaper running costs typically associated with more energy efficient homes. 

Paragon reported a 44% increase in lending against A-C-rated rental property in its last financial year to £832m. 

Under the Government’s proposals, properties let under new tenancy agreements must be rated EPC A-C from 2025 and all tenancies from 2028. However, it is over two years since the proposals were put forward and the industry awaits an update from the newly-formed Department for Energy Security and Net Zero.