0:04 AM, 22nd October 2024, About A year ago 2
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Chancellor Rachel Reeves is being urged to help landlords in her Budget next week to support both landlords and homeowners.
In a pre-budget submission to HM Treasury, proptech firm Reapit called for financial support for landlords facing costly new energy efficiency measures.
It also wants an exemption for homes that cannot be economically retrofitted from the new EPC C standard.
Plus, the reinstatement of the Landlord’s Energy Savings Allowance, and mortgage lenders to encourage to provide rate discounts for borrowing to fund energy efficiency measures.
The firm’s general manager, Steve Richmond, said: “We’ve had months of budget speculation, including debate over increases in capital gains tax, which has not helped the market.
“This has come at a time when the private rented sector is also grappling with new proposed regulations.
“What we want to see from the government in the upcoming budget is support for both the sales and lettings sector.”
He adds: “Rightmove data shows that 18% of properties for sale in September were formerly rentals.
“The government needs to address this trend, as fewer rental properties will push rents higher, affecting tenants the most.”
The government has mandated that private rented sector (PRS) homes must meet new minimum energy efficiency standards (EPC C rating) by 2030.
Reapit is warning this could lead to unintended consequences, such as a significant reduction in housing supply within the PRS.
The company’s research estimates that the cost of retrofitting all relevant PRS properties in England, Wales, and Scotland to the new minimum standard is a staggering £24.03bn.
To encourage older property owners in under-occupied homes to downsize, Reapit is also calling for stamp duty tax breaks.
This would increase the number of homes on the market at a time when inflation is falling, and interest rates are predicted to drop.
According to the latest census data, a significant proportion of households in England and Wales have more bedrooms than needed, particularly among those aged 65 and over.
Financial incentives could unlock housing supply and support market fluidity.
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Member Since June 2013 - Comments: 1121
15:53 PM, 24th October 2024, About A year ago
“Chancellor Rachel Reeves is being urged to help landlords in her Budget next week to support both landlords and homeowners”
Fat chance of the Pudsey Dalek doing either.
Nick Newbury
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Member Since April 2023 - Comments: 6
17:08 PM, 24th October 2024, About A year ago
The ‘average’ EPC rating across all UK property is D.
Whilst I understand the need for energy efficient properties, not only for tenants but for everyone, the cost to take properties to a C is disproportionate in many cases.
The reason the govt want to introduce rent controlis to ensure landlords have zero chance of recouping their costs.