Landlords Urged to Go Green Against Tax Returns
The UK's representative body for landlords- The National Landlords Association (NLA) is urging private-residential landlords to take advantage of the Landlord's Energy Saving Allowance (LESA).
The Landlord's Energy Saving Allowance (LESA) allows landlords to claim up to £1, 500 per property against their tax returns, if they install energy efficient products and procedures such as draught proofing, loft insulation and insulation for hot water systems.
The study claims if a landlord installs insulations at a cost of £1,500 the saving could be as much as £600 for higher rate income tax payers and £300 for those who pay basic rate income tax.
The incentive provides a number of benefits for landlords, including an increase in how much their property is worth and the introduction of the Energy Performance Certificate (EPC) in October.
All rental properties from October 1st will require an Energy Performance Certificate (EPC). This certificate will detail the energy efficiency of the house and will be available for the tenants to inspect. Tenants may then opt for rental properties which are more energy efficient and could present them with lower bills.
“LESA is a welcome incentive for landlords to encourage them to make the necessary energy efficiency improvements,” says David Salusbury, Chairman, NLA.
“We are pleased that the Government has chosen to offer incentives to landlords instead of regulation and would urge landlords to use the tax break or, perhaps, risk losing it in the future,” adds Salusbury.
Plus, with more Brits increasingly forced to rent as the credit crunch continues, the new NLA initiative is one that Landlords should take an interest in to secure prospective renters.
According to a separate study by Moneysupermarket.com 5 percent more people are renting properties today compared to figures last October.
The study claims Lenders’ demands for ever increasing deposits, tightening of credit criteria, higher product prices and general uncertainty over market conditions make owning a home a luxury simply out of reach of an increasing number of people.
Source: Finance Daily
Return to article list