Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
About 2 weeks ago 82
More than a third (35%) of buy to let landlords don’t know or don’t care that their rental homes fail to meet minimum energy performance standards.
Around another 17% of landlords suspect their letting properties would not meet the basic standards expected by the government’s new Green Deal.
From 2018, buy to let homes that fail to score more than the minimum will be banned from letting until remedial works are carried out.
Meanwhile, the Green Deal will make funding available for energy efficiency improvements from next year.
Landlords can take a loan of up to £10,000 to improve each letting property with repayments coming from energy savings resulting from the work.
The findings come from new research by the Association of Residential Letting Agents (ARLA) that looks at tax breaks and other incentives for landlords to upgrade their properties.
Ian Potter, ARLA’s operations manager, said: “The clock is ticking for the landlords to improve environmental performance, but the investment just isn’t there to ensure that this change takes place in the government’s timeframe.
“ARLA has campaigned for the government to incentivise – through tax relief – the improvement of rental properties. Otherwise it is going to be exceedingly difficult for the majority of landlords to find the funds to improve stock.”
Under the Green Deal, tenants will repay any money loaned to the landlord for energy efficiency improvements as a levy on their bills – but many property investors are concerned tenants will not welcome the extra cost.
“The issues of fuel poverty among too many households has been raised again as we approach winter,” said Potter. “We urge the government to ensure that the Green Deal is an effective solution to the crisis we will face unless the energy efficiency standards in housing stock can be improved.”
Energy Performance Certificates (EPCs) disclose all the information a landlord needs about the energy rating of a letting property.
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