Green BTL lending rises H1 as landlords target EPC-compliant properties, Paragon finds
In its half-year results for the six months to 31st March 2026, Paragon reported £435.7m of new buy-to-let lending on properties with EPC ratings of A to C.
Paragon Bank recorded a sharp increase in lending on more energy-efficient buy-to-let (BTL) properties during the first half of its financial year, as landlords prepare for proposed Energy Performance Certificates (EPC) requirements due to come into force in 2030.
In its half-year results for the six months to 31st March 2026, Paragon reported £435.7m of new buy-to-let lending on properties with EPC ratings of A to C, up 7.7% compared to the same period last year.
Properties with EPC ratings of A to C accounted for 56.4% of the lender’s buy-to-let lending during the period, up from 49.9% in the first half of the 2025 financial year.
Overall, Paragon’s mortgage loan book grew by 2.9% to £14.1bn, supported by £773.7m of new buy-to-let lending.
The lender also reported an 8.6% increase in its new buy-to-let mortgage pipeline, which stood at £718.9m at the end of the half-year.
Annualised redemptions remained low at 8%.
Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: “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.”
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