LONDON: Landlords are being warned to act now before a tax perk on home improvements that could help them meet new green targets is abolished.
There are just a few weeks to apply for £1,500 tax relief, per property, on works to boost energy efficiency such as insulation or a new boiler.
A further £5,600 of Green Deal cashback is available, but the application process can be chaotic, so landlords should apply as soon as possible if they want to claim.
Landlords have three years in which to make home improvements before new energy efficiency rules come into force. Their costs could run into tens of thousands of pounds and are most likely to affect Victorian and Edwardian properties, thought to make up 10pc of the rental market.
From April 2018, all rental properties must have an energy rating of Band E or higher, otherwise they will be unlawful to let.
The Government says tenants pay up to £880 more per year for energy if they live in a property whose rating is below Band E. When the new rules take effect it will be illegal to attempt to rent out inefficient properties, and landlords could be fined or even prosecuted if they are unaware that their home is not “green” enough.
