Poor Energy Efficiency Ratings Could Put Landlords Out Of Business

17 June 2012 Categories: News

Poor Energy Efficiency Ratings Could Put Landlords Out Of Business

New guidelines relating to the energy efficiency of private rental properties, that are due to come into force during 2018, could put more than one in ten landlords out of business as their rental properties would effectively be banned from the market. Landlords currently have until 2018 to improve the energy efficiency of their properties so that the official certificate rating says ‘Level E’ or higher.

Unfortunately, according to a recent survey conducted by the Association of Residential Letting Agents, 14.5% of the 1500 landlords questioned would see at least one property from their current property portfolio banned from the rental market. Staggeringly another 36% of the landlords questioned didn’t know the current efficiency ratings of their rental properties and so the true number of properties that could be disqualified may be much higher.

In response to the proposed changes for 2018, the chairman of the Residential Landlords Association, Alan Ward, is calling for the Landlords Energy Saving Allowance to be increased. At present this annual tax allowance stands at just £1500 but Mr Ward is asking for this to be increased to £14,000, even though the allowance is due to be completely scrapped from April 2015.