Keep Landlord’s Energy Savings Allowance to combat expensive Green Deal, says CLA South East

18 September 2014

CLA South East has urged the Government not to scrap taxable allowances for landlords delivering energy saving improvements on their rental properties (17 September 2014). 

The Association – which represents owners of land and businesses in the countryside – said landlords in the south east of England are not taking up current energy efficiency schemes because Green Deal loans are too expensive.

The CLA agreed with the Energy and Climate Change Committee that the scheme is not working (the Energy and Climate Change Committee report on the Green Deal).

CLA Director South East Robin Edwards said: “The Green Deal is failing to work for landlords or tenants because the seven percent interest charge is excessive.

“To encourage better uptake of energy efficiency work, the Government should retain the Landlord’s Energy Savings Allowance (LESA) instead of phasing it out in favour of non-viable loans at seven percent interest. The availability of LESA should be extended beyond 2018 and cover £5000 per annum spend for each property, as opposed to the current £1500.”

The CLA included recommendations on how the Government should set a consistent approach to energy efficiency in rental property in its report, Tackling the Housing Crisis in England.

The proposals include a range of incentives geared to helping landlords to improve the energy efficiency of their properties, including a new methodology for Energy Performance Certificates so that older rented accommodation is not unfairly taken out of use.

The CLA also called for exemption from council tax for vacant older buildings being brought up to Minimum Energy Performance standards.