Residential Landlords Association (RLA)
Why not make energy improvements tax deductible?
Energy efficiency improvements undertaken by landlords and recommended on EPCs should be tax deductible – with the RLA continuing its campaign for change as new minimum energy efficiency standards are brought in.
From tomorrow, all new tenancies and those being renewed will require properties to have an Energy Performance rating of E or better. From April 2020 the rules will apply to all rental properties.
Whilst the Government has said that landlords unable to access funding to make such improvements can register that their property is unable to meet the new standards, it is proposing that in due course a new £2,500 cap be introduced on the amount a landlord should be expected to pay to make the necessary improvements to their properties.
The RLA is arguing that all improvements a landlord carries out that are recommended on an Energy Performance Certificate should be tax deductible.
Currently landlords may make such a deduction for ‘repairs’ but not for ‘improvements’.
Such a policy would support landlords in all property types to make ambitious energy efficiency improvements, beyond just those who are required to bring their properties up to the Government’s target.
Linking tax relief to what is recommended on a Certificate would help to prevent abuses.
Recent research by RLA PEARL has found that 61 per cent of landlords would be encouraged to improve the energy efficiency of their properties if there was tax relief to do so.
According to official data, 6.6 per cent of private rented homes in England are rated either F or G for energy efficiency improvements. This is down from 25.3 per cent a decade earlier.
David Smith, Policy Director for the RLA, said: “Whilst considerable improvements have been made over the last decade, private rented homes currently falling below the new energy standards are some of the hardest to treat properties of the country’s entire housing stock.
“Given the importance the Government attaches to improving the energy efficiency of rented homes there is a strong case for giving work to upgrade this the same tax treatment as for repairs.”
For further information on grant and finance available through the RLA’s energy partners see the RLA’s energy efficiency funding page.
In addition to this the RLA has just launched two new classroom courses in Energy Efficiency Regulations and Practical Sustainability and Energy Efficiency. For more information and to book click here.
Latest News from
Residential Landlords Association (RLA)
Wales-Landlords required to provide THIS information to prospective tenants from Friday27/02/2020 13:43:00
Landlords in Wales will have to provide certain information to a prospective tenant before they can take a holding deposit, from Friday.
RLA and Appraisers UK develop HMO course for property surveyors26/02/2020 11:25:00
Property surveyors will be able to broaden their knowledge of Houses in Multiple Occupation (HMOs) to conduct valuation surveys in such properties, in a new training course.
Liverpool plans ‘alternative’ licensing scheme25/02/2020 14:25:00
Liverpool City Council has confirmed it will NOT seek a Judicial Review on plans by the Secretary of State to block its plans to renew its controversial selective licensing scheme.
Fitness for Human Habitation Act extension-one month to go24/02/2020 16:25:00
On 20th March 2020 the Homes (Fitness for Human Habitation) Act will be extended to apply to existing tenancies in England.
Electrical safety rules will leave tenants at risk24/02/2020 14:05:00
New electrical safety rules could leave tenants in high-risk rental homes vulnerable.
Coal and wet wood ban announced24/02/2020 11:25:00
Coal and wet wood, used in wood burners, stoves and opened fires will be banned from next year in a bid to tackle air pollution.
Tenants hurt by growth in short term lets24/02/2020 09:05:00
Tenants, including many with children, are finding it harder to access long term homes to rent as Government policy is driving landlords to move into the holiday lettings market, says the leading landlords’ organisation.
Daily politics update-rents, Universal Credit guidance, deposits21/02/2020 16:25:00
In our politics update today we take a look at new guidance for landlords on Universal Credit, research on rents and research on deposits.
Today in politics: renters paying more, DWP update and deposits21/02/2020 14:15:00
We look at Halifax figures showing how much more renters are paying out per month v homeowners, we link to the DWPs new Universal Credit guide and data on deposit levels in the UK.