Earlier this month, we outlined our key asks of the government in our Budget submission, ahead of Monday 29th October.
Here, we break down the document to run through what we believe the government could do to support you, the residential landlords out there offering vital homes to let. In this article, we take a closer look at what we are calling for when it comes to energy efficiency.
On Energy Efficiency, the RLA is proposing that any work that a landlord carries out to their properties, that is recommended on an Energy Performance Certificate, should be tax deductible.
The private rented sector has already improved greatly in terms of energy efficiency.
In the past ten years, research shows that the proportion of private rented homes with an energy performance rating of F or G has fallen from just over 25% in 2006 to 7% in 2016.
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 this rule will apply to all private rented homes.
Whilst the Government considers introducing a cap on the amount landlords should be
expected to pay in order to meet the Minimum Energy Efficiency Standards, we believe a more radical approach could be adopted that encourages a culture of continuous improvements to properties, rather than simply meeting set targets and leaving them there.
Research by RLA PEARL has found that 37% of landlords with properties rated F or G are unable to afford to bring their property up to at least an E rating.
The research reveals that on average, such landlords reported that it would cost them almost £5,800 to bring their properties up to the required standard.
The RLA believe that this proposal will make life better for both tenants and landlords. A rental property with lower bills will be more attractive and desirable to potential renters. As well as this, our proposal will support the Government when it comes to meeting its own energy efficiency targets.