A cap limiting landlord spending on energy efficiency improvements to £3,500 should be scrapped and replaced with a new £5,000 figure, according to the Business, Energy and Industrial Strategy Select Committee
Private landlords with properties in the lowest energy efficiency bands F and G are currently required to contribute up to £3,500 towards improving matters to an E rating or higher. But the proposal is to raise this to £5,000.
The Residential Landlords Association (RLA) has responded by arguing that work intended to improve a property’s energy efficiency rating should be tax deductible.
It believes that this would encourage continuous energy improvements rather than just meeting the minimum requirements.
The committee’s inquiry saw widespread calls for tax reforms to support investment in energy efficiency measures.
David Smith, policy director for the RLA, said: “Whilst we believe rented homes should be as energy efficient as possible, this requires a tax system that properly supports and encourages investment in energy efficiency measures.
“It is disappointing that despite calls by the RLA and others the committee has retreated to a call to raise costs for landlords without any support from government.
“This stands in stark contrast to the £3.8 billion the committee recommends the government make available to the social sector for such improvements.”
Government data shows that between 2007 and 2017, the proportion of private rented homes with an energy performance rating of F or G fell from 22% to 6%.
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