Analysis by Paragon Bank has revealed that private landlords in the UK have taken significant steps to increase the number of Energy Performance Certificate (EPC) rated properties in the private rented sector (PRS) over the past decade. In fact, the number of PRS properties rated A-C has risen by a staggering 165%, while only 42.9% of owner-occupied homes are rated in the same category.

These landlords have been investing in more energy-efficient properties ahead of proposed legislation on minimum A-C requirements. However, the report also indicates that if the government’s proposed 2025 EPC deadline were introduced, a whopping 4,500 homes would need upgrading per working day.

Moreover, the study highlights a significant reduction in the number of properties classified as non-decent, from 1.4 million to 990,000, which represents a 29% decrease.

Richard Rowntree, the managing director of mortgages at Paragon Bank, urged the government to provide more clarity on minimum EPC requirements and to support local authorities in identifying poor quality properties and landlords. Rowntree opined that the private rented sector is often unfairly associated with substandard housing, and that the increasing number of energy-efficient rental properties reflects the improvement in standards brought about by landlords in recent years.

However, Rowntree noted that the industry now needs more clarity on the government’s proposals for minimum levels of EPCs. He cautioned that the timescales as they are currently proposed are unworkable, and that the infrastructure to support the upgrading of over 2 million properties in such a short window does not exist.

In conclusion, Paragon Bank supports the government’s aims set out in the Renters Reform Bill to raise the standard of property and to introduce a property portal to ensure information is available to all. A more transparent market will be to the benefit of tenants, landlords, and lenders alike. Nevertheless, it is critical that the government provides more clarity on minimum EPC requirements and offers support to local authorities in identifying poor quality properties and landlords who do not meet the required grade.