Energy efficient homes are good for tenants and good for landlords says RLA

Written by Allen Walkey on - Breaking News -

Read latest news story from Residential Landlords Association (RLA) released 8th August 2018: ‘Greater Ambition Needed on Energy Efficiency of Rented Homes’.

LANDLORDS are calling on the Government to be more ambitions when it comes to the energy efficiency of rented housing.

Since April, all new or renewed private sector tenancies require properties to have at least an ‘E’ rating on their Energy Performance Certificate. From 2020 that will apply to all private rented homes.

Whilst the Government is considering raising this target to a C rating by 2030, the Residential Landlords Association is calling on policy makers to be more ambitious for the sector.

In its forthcoming submission to the Treasury ahead of the Budget , the RLA will call for all private rented homes to be as energy efficient as possible.

To achieve this, it wants all work carried out by landlords that is recommended on an Energy Performance Certificate (EPC) to be considered a tax deductible repair. This would encourage a culture of continuous improvements to properties rather than simply meeting set targets and leaving them there.

New research by the RLA’s research body , PEARL, has found that 37 per cent of landlords with properties rated F or G are unable to afford to bring their property up to at least an E rating. On average, such landlords reported that it would cost them almost £5,800 to bring their properties up to the required standard.

Previous research by RLA PEARL has found that 61 per cent of landlords reported that tax relief for energy efficiency works would encourage them to improve the energy efficiency of their properties.

With Ministers having previously withdrawn the Landlord Energy Savings Allowance because of a lack of take up, the RLA argues that targeted tax relief for energy improvements could be more readily taken up in combination with the back stop of minimum targets to reach. This would increasing the take up of the tax relief.

The proportion of private rented homes with an Energy Performance Rating of F or G has fallen from just over 25% in 2006 to under 7% in 2016.

The Committee on Climate Change’s (CCC) annual report has found that the UK is on track to miss its legally binding future carbon budgets, due to the lack of progress in cutting emissions from buildings.

RLA Policy Director, David Smith, said:

“Whilst progress has been made, we need to be more ambitious for the country’s stock of private rented homes.

“Energy efficient homes are good for tenants and good for landlords.  That is why we need to use taxation far better than we do at present to encourage a continuous culture of energy improvements.

“Using recommendations on Energy Performance Certificates in this way is a clear and easy way of achieving this and we call on the Chancellor to adopt the policy in his Budget.”

Source of information RLA

Author: Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

Estate Agent Web Site Design special offer combined with Mailsign Branded emails just £499 for interactive bespoke design.

Full Details of Web design Service 

Share
 

Recent Popular Articles


House prices up in July


According to the Nationwide house prices rose  on a month on month basis by 0.4% in July, that was in line with with forecasts and


Funding for affordable homes will be increased by a further £2 billion


The government has confirmed plans for a new generation of council and housing association homes as confirmed in the Gov.UK announcement. Government has confirmed plans for


Fracking profits could benefit individual households


The highly controversal method of producing oil and gas by fracking is again under the spotlight, the  Prime Minister Theresa May is considering paying the


Huge interest in Right-to-Buy


Thousands of households across the country are signing up their interest for the Right to Buy, according to latest government figures. Communities Secretary Greg Clark


OnTheMarket announces over 10,000 agent branches now contracted


OnTheMarket plc, the agent-backed company which operates the OnTheMarket.com property portal, today announces that, as of 24 July, it has signed listing agreements with UK