HMOs are increasingly criticised in some quarters but are today praised for their energy efficiency improvements.
HMO operators are accelerating investment while continuing to support tenants with the rising cost of living, according to new research from Paragon Bank.
The findings of Paragon’s research show that 66% of HMOs owned by the landlords surveyed already achieve an EPC rating of A to 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 the private rental sector prepares for proposed changes to Minimum Energy Efficiency Standards, which are expected to require 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 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, the insight points to a sector that is proactively improving the quality and efficiency of housing while maintaining a focus on affordability for tenants.
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, says:“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.
“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.
“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.”
