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Residential Landlords need support if Labour wants ‘greener’ renting

Landlords cannot afford to improve energy efficiency on their properties survey shows

Many residential landlords are unable to afford to improve the energy performance on their properties, increasing tenants utility costs and hampering efforts to improve carbon emissions.

Heather Powell, Head of Property said:

Blick Rothenberg did a survey asking clients and contacts in the property sector before the election about their plans for the improvement of the energy performance of their properties.

Those involved in the residential sector were not planning works, were not making financial provision to complete works, and indeed did not identify the need to complete works that would improve the energy performance of their properties.

This is due to two things. Firstly, landlords have been hit hard by the increase in mortgage rates and previous changes to the tax regime and do not have the funds to undertake works to improve energy performance, even if those works would help to reduce utility bills and therefore benefit both tenants and landlords in the long term. This also means that carbon emissions are not being reduced.

Secondly, the announcement by the previous Government that the requirement to improve the energy efficiency of homes from 2025 was being removed, combined with huge demand for rental properties, particularly in the South East, has resulted in a stalling of works to improve the energy performance of these homes.

This means that residential landlords have neither the financial means or any legislative pressure to increase the energy performance of their properties.

Heather added:

The new Government has not made any announcements about how they are going to address this issue, yet. However, if they do implement the changes hinted at in their Manifesto these, combined with the promises to immediately abolish no fault evictions and allow private renters to challenge unreasonable rent increases, may result in more landlords deciding it is time to exit from the sector and sell their properties.

The Government need to consider if their objective is to reduce the number of landlords and rented properties, or if they wish to support landlords who do complete the energy performance works by giving tax relief or other measures.

Would you like to know more

If you would like to discuss any of the above, please speak to your usual Blick Rothenberg contact or Heather Powell using the form below.

Contact Heather

Heather Powell
Heather Powell
Partner, Head of Property and Construction
View Heather's profile