‘Give landlords who improve housing energy efficiency tax relief’ says chief

Blick Rothenberg’s Heather Powell says Government should allow income tax relief for landlords who improve the energy efficiency of rental stock.

Heather Powell, Blick Rothenberg

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 Heather Powell (main picture), Head of Property and a Partner at tax and advisory firm Blick Rothenberg, says Hunt could use the Budget in a month’s time to make such an announcement.

ENERGY EFFICIENCY

She says: “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.”

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

Powell’s suggestion comes as 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.

Lloyd Cochrane, NatWest
Lloyd Cochrane, NatWest

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.


One Comment

  1. If landlords, why not owner-occupiers too?

    And why not link council tax to energy-efficiency too? The higher your EPC, the more you get a deduction on your council tax.

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