A cap limiting landlord spending on energy efficiency improvements to £3,500 should be scrapped and replaced with a new £5,000 figure, according to the Business, Energy and Industrial Strategy Select Committee
Private landlords with properties in the lowest energy efficiency bands F and G are currently required to contribute up to £3,500 towards improving matters to an E rating or higher. But the proposal is to raise this to £5,000.
The Residential Landlords Association (RLA) has responded by arguing that work intended to improve a property’s energy efficiency rating should be tax deductible.
It believes that this would encourage continuous energy improvements rather than just meeting the minimum requirements.
The committee’s inquiry saw widespread calls for tax reforms to support investment in energy efficiency measures.
David Smith, policy director for the RLA, said: “Whilst we believe rented homes should be as energy efficient as possible, this requires a tax system that properly supports and encourages investment in energy efficiency measures.
“It is disappointing that despite calls by the RLA and others the committee has retreated to a call to raise costs for landlords without any support from government.
“This stands in stark contrast to the £3.8 billion the committee recommends the government make available to the social sector for such improvements.”
Government data shows that between 2007 and 2017, the proportion of private rented homes with an energy performance rating of F or G fell from 22% to 6%.
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3.5 k, 5 k, what's the difference? 1.5 k don't buy you much. I have a property was a G, now improved to an F, to improve any further will cost 15 k, existing happy tenants, I've applied for an exemption.
It will cost you 5k to install a new 'A' rated boiler, insult insulation in the roof and the walls or provide double glazing. All will improve your EPC . Wouldn't it be better to make all energy Efficient products and services be exempt from VAT?
It will take decades to get payback on EPC compliant outlay.
Just not worth it.
EPC are not worth the paper they are printed on.A good professional LL keeps his her property better than an EPC states but who really reads them, tbe tenant doesn't
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