Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

NRLA calls for tax reforms to support energy improvements

homes energy efficient

According to the association, there is challenge in making homes energy efficient as 32% of properties in the private rented sector were built before 1919

The National Residential Landlords Association (NRLA) is calling on the government to reforms the tax system to support energy improvements to rented housing.

This comes as MPs on the Environmental Audit Committee concluded last week that the delivery of the government’s Green Homes Grant scheme had been “poor”.

Within the committee it was noted that the eligibility criteria for the scheme “prevented many from being able to access vouchers for the measures they required”.

According to NRLA, there is challenge in making homes energy efficient as 32% of properties in the private rented sector were built before 1919.

The government has committed to upgrade as many private rented sector homes as possible to Energy Performance Certificate (EPC) Band C or better by 2030.

Currently, 62% of homes in the private rented sector have an EPC rating of D or lower.

Moreover, the association is calling on the Chancellor to help achieve this by ensuring that the tax system actively supports landlords who want to make energy improvements.

The association is proposing that energy efficiency measures carried out by a landlord should be offset against tax at purchase, as repair and maintenance, rather than as an improvement at sale against Capital Gains Tax.

Ben Beadle, chief executive of the National Residential Landlords Association, said: The rental market stands ready to play its part in securing a green recovery. However, to achieve this we need a tax system that properly supports and encourages the work needed to ensure rented homes as are energy efficient as possible on a long-term basis.

The Green Homes Grant scheme proves that short term measures do not work, he said.

He said that the Chancellor needs to use tax more positively to encourage investment in energy improvements. This would play a crucial role in cutting bills for renters, reducing carbon emissions and improving the nation’s housing stock.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.