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Politicians want tax incentives for landlords to boost energy efficiency

The Welsh Government should consider tax incentives to support improvements to the energy efficiency of private rented housing, according to a new report from Members of the Welsh Parliament, known as the Senedd.

In its report on decarbonising private housing, the Senedd’s Climate Change Committee argues that ministers in Wales should look at how to use council tax and the Land Transaction Tax - the Welsh version of stamp duty - “to incentivise energy efficiency retrofit as a priority.”

The report concludes that accelerating energy efficiency improvements in the privately owned housing stock will require a combination of both “incentives and regulatory standards.”


The National Residential Landlords Association says the UK government has failed to provide clarity about the energy efficiency standards that will be expected of the sector. This is despite a consultation closing on the issue over two years ago. 

The Welsh report warns that: “While the UK government continues to drag its feet over whether to increase standards in the private rented sector, the sector remains in limbo.”

 Recognising the important role that the private rented sector plays in meeting Wales’ housing needs, the committee warns that any changes to energy efficiency standards need to avoid having an “impact on the availability of affordable, private rental properties.”

Ben Beadle, NRLA chief executive, says: “The NRLA welcomes today’s report. Whilst we all want to see properties as energy efficient as possible, this needs to be backed up by a sensible financial package to support such work.

“The committee is right to call on the Welsh Government to look at how to use the devolved tax powers it has to support energy efficiency improvements. We also share the committee’s concerns that new regulations should avoid hitting the supply of much needed homes to rent in Wales.

“We urge the Welsh Government to consider the reports recommendations with the seriousness that they deserve.”

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  • Steven Williams

    Rather something like a 0% interest loan or funding towards it, as me personally at the moment, I don’t have that amount of funds available to carry out any improvements. Only improvement I can carry out now is EWI on my properties now.

    Although it’s the Welsh gov so knowing them they'll likely double the tax on us.

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    They can see the 💩 storm that is about to befall them if the big C comes in…. A tsunami of older properties being sold and the tenants evicted.

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    The first thing we need is an accurate measure of energy efficiency not what we currently have. EPCs penalise 'green' electricity based on the fact that it used to remade from coal & tied to the gas prices so it is expensive whilst gas boilers, which the Govt want to ban, are the highest scoring heating.

    Until EPCs are an accurate, transparent & consistent measure of energy efficiency they are as useful as a chocolate fireguard!

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    I don't know a single, well-informed domestic landlord who has not already improved their stock up to EPC Grade C. Its so blindingly obvious. Why would we want our customers living in fuel poverty, spending money on gas and electricity (that goes straight off to Norway and Qatar) when that money would be better spent on some rent increases - or just paying the current rent!
    EPCs came in in 2008, the MEES Regs came in the 2015, the Government has done the right thing and given all landlords, both domestic and commercial, bags of notice - 8 years to be precise.
    The only landlords I've seen that push back on making their assets better and fit-for-the-future, are the tiny minority on this website! I sometimes doubt that these contributors are actually landlords at all. They don't seem to be rational, well informed or invest for the long-term. I think they may be in the wrong business.
    The Sunday Times article is interesting because, from what I've read in the professional property press this week, their whole so-called analysis has back-fired and actually proved the positive case for EPCs, not the reverse. Their evidence shows that folk living in the worst houses and flats in the UK use less energy than the EPC model would suggest. WOW, really??!! Well, the EPC model assumes that the tenant heats the whole property to 20 degree all winter long. Only Jeff Bezos could afford to heat an EPC Grade F or G house all winter long. That's precisely the point. The tenants living in EPC Grade E, F and G homes ONLY HEAT ONE ROOM, and they don't do that very often. CarbonLaces have PROVED how accurate EPCs are and their 'research' proves that 8 million families are today living in terrible fuel-poverty. Which means they don't have the CASH TO PAY THE RENT.
    I, and every professional landlord I do business with, will continue to improve our investment assets through careful energy efficiency upgrades. Normally best done when the unit is in between tenancies.

    George Dawes

    Fascinating 🧐


    Should we be rejoicing that you have finally typed up something new or be offended at being described as irrational and ill informed?
    Maybe we should just bet on how many times you're going to copy and paste the same thing in the next 6 months?

     G romit

    "The only landlords I've seen that push back on making their assets better and fit-for-the-future, are the tiny minority on this website!"

    Please share your research that shows this.


    I look forward to re-reading this new post again & again every time EPCs are mentioned!


    So Martin you claim to be ''professional'' therefore we must all be the cowboys LOL

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    Martin Gibbons.... You're on this website too so are you the exception to the rest of us?

  • George Dawes

    He does waffle on doesn’t he ?


    Yes but only 1 different monologue every year!

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    Making any energy efficiency upgrades tax deductible in the year of installation would be a good start. Making them a super deduction may encourage us to really focus our attention.

    The current system of expecting us to pay for this stuff out of tax paid money and class it as a Capital improvement is crazy. Due to Section 24 some of us are paying 60% tax on money we don't have as we are actually paying that chunk of turnover as loan interest. If we sell before we die the amount spent on Capital improvements would slightly lower our CGT bill but if we die without selling it does nothing for the IHT bill.

    If a super deduction tax relief was back-dated and applied to all energy improvements we have made in the last 3 tax years it would be an excellent way to focus our minds and clearly indicate to the government how much or little we have already been doing.

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    Martin dearest there will be no in between Tenancies, Mr Michael Gove just them permanent, let him heat them.
    I have 6 EPC’s with a ‘C’ so it’s not as if I have been doing not.
    However none of the requirements are financially viable or where is all those savings to be made.
    Just looking at a EPC recommendation now Insulate internal of outside walls £14’000 savings £173. pa but I have done this already not possible in future with permanent Tenants anyway I’ll get it back in 80 years.
    Another part it says floor Insulation £4000. / £6000. so say £5000. savings £31.00 pa (but I have done this already to)
    so I will get this back in 161 years some investment.


    Michael - assuming your tenants pay their own utility bills you won't get the savings back at all. They will be better off by £204 a year. Theoretically, if they understand how to operate their heating controls.

    You have paid for these improvements out of money you have already been taxed on. Floor and internal wall insulation have almost never attracted grant funding.

    If you sell before you die you may get a fractionally reduced CGT bill because Capital improvements can currently be taken into account. Do any of us trust the government where CGT is concerned? Of course the improvements may have added thousands to the value of your property simply by getting it to an EPC C.

    If you still own it when you die IHT will be due on the value of the property with no offset.

    Whichever way you look at it we're expected to pay for this stuff with no financial assistance or benefit to ourselves.
    HMRC are going to be the main beneficiary through a combination of VAT on purchase and installation costs, CGT on increased property values and IHT if the extortionate level of CGT puts you off selling.

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    I had a chat with an EPC assessor about underfloor insulation where there is a solid floor. Take the kitchen out; dig up the floor; lay insulation; relay the floor, put the kitchen back in & redecorate - all for 1 point! Oh & evict your tenant before you start & pay council tax & utilities while you're doing it!

    It ain't gonna happen!

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    • B L
    • 02 March 2023 12:17 PM

    Please vote
    Reinstate Tax Relief Allowing Mortgage Interest to be Set Against Rental Income.
    You can copy the subject above to find the direct link to vote.


    Less then 100 signatures in the last 24 hours. It's going to be difficult to get to the 100k, need over 900 signatures per day, every day.

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    Jo, what you say is very true and the Tenants do pay their own Bills which is the best way to cut waste, as I don’t let rooms. I hear rumblings they want landlords to pay Bills which means I will have to start letting rooms which is ok too my rents will then be market rents. Many adjacent houses currently are charging £1000. pm more than me so they need to be careful what they wish for.

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    Incidentally all are licensed and re-licensed anyway.

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    • B L
    • 02 March 2023 12:34 PM

    Three contractors had declined to do double glazing or sash windows because they were occupied for higher profit jobs; new boiler is too expensive to 4-5k; walls and roof can do very little for an old building; so to achieve C on EPC is impossible and too expensive for all buildings in conservation areas.
    If government wants everybody on board with this, then it needs to be a generous tax advantage of 4-5 k to do this, otherwise it is absolutely not workable. Landlord bashing needs to stop. Why only the properties for tenants need to reach certain standards, what about residential properties? We need to get somebody competent and stable as a housing minister would help, this department seems to be a revolving door.


    Too many votes at risk if owner occupiers are upset.

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    Without Section 21, I couldn’t care less what they abolish it not a Business.
    I need a brain scan to see what’s wrong with me.
    The Landlord Property magazine current issue cover shows a guy riding about on a bike in Amsterdam while running his portfolio in the UK.
    I am hands on 24/7 and don’t get a minute to my self something seriously wrong.

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    Nothing they do now will stop me from selling. (Scotland). I have tenants who were supposed to be out on the 28th Feb but it hasn't happened. With the eviction ban and a possible extension beyond September.. who knows when I'll get my property back... Am I worried about EPC ratings....? Ha ha... Not a bit. Thankfully another property has been vacated and goes on the market this week....with more to follow... I can't wait to PRexit!

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    A long time ago a financial newspaper article describe letting property as," if you like cleaning drains out !" Very true remark. But these days the banks are manipulating the market and trying to get mug investors on board, to buy the crap they are building! Maintenance costs are very high in the PRS, so most landlords do it themselves.


    I'm not proud, I'll clean a drain out if I'm being paid well to do so

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    Andrew, lve been swinging from the top of a ladder trying to unblock a downspout and on my hands and knees trying to unblock a foul drain. Both times they cleared after an awful lot of effort and innovation (trying different methods). No reward apart from saving a big bill. Unscheduled unexpected cost.


    Well Edwin there is a reward if you escaped that big bill


    I recently had to balance a step ladder on top of a kitchen worktop to fix a broken blind 12 feet off the floor.

    One of the tenants made sure that the ladder didn't move as it was about an inch from the edge of the worktop.

    Any employee would have wanted to carry out a risk assessment then set up a scaffold to reach the blind to keep the helfnsafety bods happy and add hundreds to the cost.

    Just one of the reasons why small hands on landlords provide a better, faster and cheaper service than social and corporate landlords - same as for small garages, shops and self employed tradesmen.


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