A ‘simple tax change’ would help landlords meet the costs of EPC property upgrades, Propertymark says.

The trade body is one of a group of organisations to write to Chancellor Jeremy Hunt urging him to give landlords a tax incentive.

If the Government allowed the expense of energy improvements to be offset against rental income it would be much more affordable for landlords.

Latest government plans suggest that all rental properties should have at least an EPC C rating by 2028.

Compelling

“There is a compelling case for boosting energy efficiency in the private rented sector,” Propertymark says.

“Other countries, including Scotland, have already introduced tax incentives and green loans to support higher standards.”

Landlords can currently deduct from tax the costs of managing the property, legal fees, replacement furniture, insurance, utility bills, ground rent and maintenance and upkeep, but not energy-saving improvements.

Not achievable

“A simplified exemptions regime and additional financial support must be made available to property owners otherwise the measures in their current form will not be achievable”, Propertymark warns.

New rules and requirements must be realistic and achievable.”

Timothy Douglas, head of policy and campaigns at Propertymark, says: “We want to see more energy-efficient homes, but new rules and requirements must be realistic and achievable.

“Without providing landlords and homeowners with incentives and access to sustained funding, it is unlikely that energy efficiency targets for the private rented sector and a reduction in emissions across the property sector will be met.”

Other organisations which have signed the letter include NRLA, Nationwide and Coventry building societies and Citizens Advice.

Landlords make their move ahead of EPC rules deadline