In a call for action, Heather Powell of Blick Rothenberg has urged the government to introduce tax incentives for buy-to-let landlords dedicated to enhancing the energy efficiency of their rental properties. As the Spring Budget draws near, Chancellor Jeremy Hunt is encouraged to consider measures that would allow buy-to-let landlords to benefit from income tax or corporate tax relief on such improvements.
According to Powell, who serves as the Head of Property and a Partner at the tax and advisory firm, this move is crucial for motivating landlords to upgrade their properties, especially in light of the government’s future imposition of higher energy efficiency standards from April 2025. Powell emphasised, “Whilst the Government has been encouraging buy-to-let landlords to improve the energy efficiency of their properties, it’s about turn on the imposition of higher standards from April 2025 has stopped all requirements for landlords to undertake these works, which are essential if the UK is going to reach Carbon Zero by 2050.”
The proposal aims to alleviate the growing concern over rising energy costs, which have significantly impacted renters across the UK. Recent research conducted by NatWest and S&P Global indicates that a majority of renters are bracing for increased monthly expenses and are advocating for buy-to-let landlords to implement energy-saving modifications to their properties. Such changes are seen as vital for controlling escalating energy bills and improving the overall insulation and energy efficiency of rental accommodations, which typically lag behind owner-occupied homes in these aspects.
Lloyd Cochrane, Head of Mortgages at NatWest, pointed out that cost and disruption are significant obstacles for homeowners and landlords alike in making sustainable upgrades to their properties. He noted the increasing demand from renters for landlords to focus on the energy efficiency of their rental units.
As the Chancellor prepares to present the Spring Budget on March 6, the spotlight is on potential policy changes that could support the UK’s ambitious Carbon Zero targets by 2050, while also addressing the immediate cost-of-living challenges faced by renters. Powell’s recommendations highlight a path forward that could benefit both landlords and tenants by making energy-efficient housing more accessible and affordable.
