Paragon Bank increased lending on more energy-efficient buy-to-let properties during the first half of its financial year, with EPC A-C rated homes accounting for a growing share of new lending ahead of proposed minimum energy efficiency requirements due to come into force in 2030.

The lender’s half-year results for the six months to 31 March 2026 show that £435.7m of new buy-to-let lending was secured against EPC A-C properties, up 7.7% on the same period a year earlier. As a result, more energy-efficient homes accounted for 56.4% of buy-to-let lending, compared with 49.9% in the first half of the previous 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. Its new business pipeline stood at £718.9m at the end of March, up 8.6% year-on-year, while annualised redemptions remained at 8%.

Louisa Sedgwick, Paragon Bank managing director of Mortgages, 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.”

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, with UKF reporting arrears of 0.65% for the buy-to-let sector at 31 March 2026.

Overall, Paragon Banking Group recorded underlying profit before tax of £145.7m for the period, with a 3.8% increase in the Group’s net loan book.