A bank has recorded a strong increase in buy-to-let lending on more energy efficient properties as landlords prepare for new EPC rules in 2030.
Unveiling its half-year results for the six months to the end of March, Paragon recorded £435.7m of new buy-to-let lending on EPC A-C properties.
This was a 7.7% increase compared to the same period a year ago.
EPC A-C properties accounted for 56.4% of buy-to-let lending during the period, compared to 49.9% during the first half of the 2025 financial year.
Overall, Paragon grew its mortgages loan book by 2.9% to £14.1 billion during the half-year on the back of £773.7m of new buy-to-let lending.
The new buy-to-let mortgages pipeline closed the half-year 8.6% higher at £718.9 million.
Louisa Sedgwick, Paragon Bank Managing Director of Mortgages, says: “Landlords are increasingly targeting properties with higher energy efficiency with one eye on the new EPC rules expected to come into force in October 2030.
“We launched our green mortgages six years ago, offering preferential pricing for EPC A-C properties, and have recently relaunched our new build proposition to cater for landlords acquiring new homes.”
The credit performance of Paragon’s buy-to-let assets remained strong, with three-month arrears at 0.50%, lower than the overall performance of the buy-to-let market.
Overall, Paragon Banking Group recorded underlying profit before tax of £145.7 million for the period, with a 3.8% increase in the Group’s net loan book.
This article is taken from Landlord Today