Property News Archive

Break for forward-thinking landlords

Savvy landlords who install energy saving devices will benefit from a significant tax break and also appeal to a wider range of tenants.

It is possible for landlords to claim against the cost of installing devices such as draught-proofing, loft insulation, floor insulation, cavity wall insulation, solid wall insulation and insulation for hot water systems.

The National Landlords Association has urged landlords to take advantage of the opportunity to claim a maximum of £1,500 per property against the cost of installing the items.

It said these items would not only improve the energy efficiency rating of the property but lower fuel bills for prospective tenants.

If insulation costs a landlord more than £1,500 to install, higher rate income tax payers could save as much as £600 and basic rate income tax payers could make a saving of up to £300.

In light of rising mortgage rates, this could provide a ray of hope for landlords attempting to "go green".

From October 1, 2008, all rental properties in England and Wales with a new tenancy are required to possess an Energy Performance Certificate (EPC), which will inform prospective tenants of the property's energy efficiency.

This may encourage potential tenants to opt for a property that does not have such high energy costs.