Landlords are Wanting More Support on Boosting their Energy Performance
The National Residential Landlords (NRLA) want the tax system to support energy improvements to rented housing.
It has been concluded by the Environmental Audit Committee that the Governments Green Homes Grants Scheme has been 'Poor'. It has been noted that the eligibility criteria for the scheme 'prevented many from being able to access the vouchers for the measures required'.
Over 32% of properties in the private rented sector were built before 1919, this is a huge challenge in making these energy efficient when compared with any other housing sector. Even though currently 62% of the rented sector have an EPC rating of a D or below, the Government are wanting them to be a band C or above by 2028.
Another challenge is that some properties that are compliant with the 2012 regulations don't have the potential to increase so the Government needs to consider this. If the property's EPC is a D or lower but has no potential to increase. How can they make their EPC compliant with the plans for all rented properties to be a C.
The NRLA are proposing that the energy efficiency measures carried out by a landlord should be offset against tax at purchase as maintenance rather than as an improvement at sale against Capital Gains Tax. This would address situations like how replacing a broken boiler is deductible but replacing an energy inefficient model for an energy efficient model boiler or heating system is not.
The rental market want to play their part in securing green recovery, however to achieve this we need a tax system that properly supports and encourages the work needed to ensure rented homes as energy efficient as possible on a long-term basis.
Source: NRLA
