Paragon Bank has reported increased buy-to-let lending on more energy efficient properties as landlords prepare for expected EPC rule changes in 2030.

The lender recorded £435.7 million of new buy-to-let lending on properties with an EPC rating of A to C in the six months to 31 March 2026, a 7.7% increase on the same period a year earlier.

Properties rated EPC A to C accounted for 56.4% of Paragon’s buy-to-let lending during the period, up from 49.9% in the first half of its 2025 financial year.

Paragon’s mortgages loan book grew by 2.9% to £14.1 billion during the half-year, supported by £773.7 million of new buy-to-let lending.

The lender said its new buy-to-let mortgages pipeline ended the half-year 8.6% higher at £718.9 million, while annualised redemptions remained low at 8.0%.

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.”

Paragon said the credit performance of its buy-to-let assets remained strong, with three-month arrears at 0.50%.

This was below the wider buy-to-let market, with UK Finance reporting arrears of 0.65% for the sector at 31 March 2026.

Paragon Banking Group recorded underlying profit before tax of £145.7 million for the period, while the group’s net loan book increased by 3.8%.