News
Give landlords who improve housing energy efficiency tax relief' says chief
Wednesday 14th February 2024
The Negotiator
Chancellor Jeremy Hunt should use his Spring Budget to encourage buy-to-let landlords to improve the energy efficiency of their rental stock by allowing them to claim income tax and or corporate tax relief and could use the Budget in a month's time to make such an announcement.
ENERGY EFFICIENCY
Whilst the Government has been encouraging buy-to-let landlords to improve the energy efficiency of their properties, it's about turn on the imposition of higher standards from April 2025 has stopped all requirements for landlords to undertake these works, which are essential if the UK is going to reach Carbon Zero by 2050.
If the Government is serious about improving the efficiency of rental homes - and helping people deal with the cost-of-living crisis - it should allow buy-to-let landlords to get income tax relief when making their annual tax return declarations, or corporate tax relief, if the properties are owned through a limited company.
This step would ensure that the landlords get tax relief on a timely basis and would help landlords fund the investment in improving Britain's stock of rented accommodation.
A view shared by industry chief Heather Powell, Head of Property and a Partner at tax and advisory firm Blick Rothenberg.
She adds: "This step would ensure that the landlords get tax relief on a timely basis and would help landlords fund the investment in improving Britain's stock of rented accommodation."
SOARING COSTS
Renters have called for landlords to upgrade properties as soaring energy costs bite.
Three in four UK renters expect their monthly costs to rise and want landlords to make green changes to their properties in a bid to keep excessive energy bills down, research from NatWest and S&P Global reveals.
Rental properties are typically less well insulated than owner-occupied homes - especially when it comes to tanks and pipes insulation and cavity wall insulation.
Lloyd Cochrane, Head of Mortgages at NatWest, says: "Cost and disruption continue to be major barriers for homeowners looking to make sustainable changes to their homes.
"We've also seen from latest data that renters are increasingly calling for landlords to address the energy efficiency of their properties."
Chancellor Jeremy Hunt will deliver the Spring Budget on March 6.
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