Under-rated HMOs are praised for energy efficiency investment
Summary
Paragon Bank research suggests that many HMOs are already performing well on energy efficiency, with 66% of surveyed properties rated EPC A to C and none in the lowest F or G bands. The article also notes that more than a quarter of landlords have accelerated improvements in anticipation of proposed Minimum Energy Efficiency Standards requiring EPC band C by 2030.
Why it matters
For residential property surveyors, this highlights the growing importance of EPC performance and retrofit planning in the HMO sector. It also signals continued landlord activity ahead of future energy-efficiency regulation, which may affect inspections, advice and valuation considerations.
Key points
- 66% of surveyed HMOs already achieve EPC A to C
- No surveyed HMOs were reported in EPC bands F or G
- 28% of landlords have brought forward energy-efficiency upgrades
- More than four in ten landlords are absorbing higher energy bills rather than raising rents
- Proposed MEES changes are expected to require EPC band C by 2030
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