News
Landlord group hits out at government energy improvement plans
Friday 17th December 2021
Ryan Bembridge
The National Residential Landlords Association has called for the government to change its energy improvement plans, saying "they rely on a misguided assumption that landlords have unlimited sums of money".
The government has stipulated that landlords should pay up to £10,000 to improve the energy efficiency of rental properties.
It's expected that landlords will be required to bring their properties up to an EPC rating of C by 2026 for new tenancies, and by 2028 for existing tenancies.
The NRLA is calling on the amount that landlords are expected to contribute to be linked to average market rents in any given area (known as broad rental market areas) as calculated by the Valuation Office Agency.
This would mean the amount a landlord would need to contribute would gradually taper from £5,000 to £10,000, taking into account different rental values across the country.
The NRLA also requested a package of fiscal measures to support investment. This should include the development of a decarbonisation tax allowance, no longer applying VAT to energy efficiency and low carbon work and not charging council tax where energy improvements are being made to rental properties when they are empty.
Ben Beadle, chief executive of the National Residential Landlords Association, said: "We all want to see as many energy efficient rental properties in the sector as possible.
"Besides being good for tenants, improvements made to rental properties ensure they become more attractive to prospective tenants when being marketed by landlords and agents. However, the government's proposals for the sector are not good enough.
"They rely on a misguided assumption that landlords have unlimited sums of money and fail to accept the realities of different property and rental values across the country.
"Ministers need a smarter approach with a proper financial package if they are to ensure their ambitious objectives are to be met."
The NRLA's own research shows that private landlords make an average net income from property of less than £4,500 a year.
Across England over 58% of private rented households have an energy rating below a C.
Around a third (32%) of private rented homes were built prior to 1919, some of the hardest to improve housing in the country.