HMO landlords are ahead of the game when it comes to investing in energy efficiency improvements, according to new research from Paragon Bank.

Its poll found 66% of HMOs owned by these landlords already achieve an EPC rating of A to C, putting the sector ahead of the wider housing stock, where about 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 changes to Minimum Energy Efficiency Standards, which will require all rental properties to reach EPC band C by 2030.

More than a quarter of landlords (28%) have already brought forward energy efficiency improvements in response to these proposals.

Steps

At the same time, many home providers 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.

Taken together, Louisa Sedgwick, managing director of mortgages, says the insight points to a sector that is proactively improving the quality and efficiency of housing while maintaining a focus on affordability for tenants.

“Energy efficiency is now a core part of how HMO landlords operate. Many are already ahead of proposed standards, which reflects a long-term approach to managing their properties,” adds Sedgwick.

“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.”

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