Two-thirds of houses in multiple occupation owned by landlords surveyed by Paragon Bank have an EPC rating of A to C, its research has found.

The proportion, at 66%, compares with about half of the wider housing stock, based on government data. None of the landlords surveyed reported owning an HMO in the lowest F or G bands.

The findings come as landlords prepare for proposed changes to Minimum Energy Efficiency Standards, which are expected to require all rental properties to achieve an EPC rating of C by 2030.

More than a quarter of landlords surveyed, at 28%, said they had brought forward energy efficiency improvements in response to the proposals.

More than four in 10 said they were absorbing increases in energy bills instead of passing them on to tenants through higher rents.

Louisa Sedgwick, managing director of mortgages at Paragon Bank, said: “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.”