Landlords’ Energy Efficiency Scheme

It was announced in the Budget 2006 that the Landlords Energy Saving Allowance was to be extended to include draught proofing and the insulation of hot water systems. The scheme, which was first announced in the 2004 Budget, provides £1,500 for landlords investing in energy saving measures for their properties. There are also other measure which are eligible as well such as cavity wall, loft and solid wall insulation.

The Budget also confirmed the Pre-Budget announcement that the Wear and Tear Allowance (the 10% pa allowance given by HM Revenue & Customs for depreciation of landlord’s assets) is to be made conditional on the energy efficiency level of the property thereby incentivising the measures landlords can take to improve the energy efficiency of their properties by linking this to the forthcoming Energy Performance Certificates.

The way forward for raising energy efficiency in the private rented sector has been set out in a concise statement of shared objectives of the interest groups represented in the Energy Efficiency Partnership for Homes’ Private Rented Sector Sub-Group.

Launched at the House of Commons on 26th April 2006 the new position paper is the culmination of eighteen months of discussion between landlords associations, tenants groups, energy specialists and government - all brought together in a unique forum by the EEPH.

The recommendations set out in “Reducing the Carbon Impact of Private Rented Housing� are intended to present a united front to policy makers.

Energy Efficiency – Some Useful Information

Energy efficiency improvements cost less than you think and could increase the value of your properties.

There are some simple things you could do to improve the energy efficiency of your properties:

- Top up your loft insulation and insulate your walls. Your energy supplier is offering big discounts on prices for insulation right now – make the most of them!
- Update your heating system with a high-efficiency condensing boiler and effective heating controls
- Take advantage of significant discounts and buy a new, more energy efficient washing machine, fridge or freezer

Your tenants will benefit from lower running costs and a more comfortable living environment, making them more likely to stay longer in your property.

Energy efficiency improvements can help you meet your legal requirements, whilst supporting your reputation as a landlord who takes the quality of their properties seriously and delivers a professional service for tenants.

Help is at Hand

A network of Energy Efficiency Advice Centres operates across the UK.

To contact your local centre, simply call 0800 512 012.

Some Energy Efficiency Advice Centres offer a drop-in service. You can find your local Energy Efficiency Advice Centre at http://www.est.org.uk/myhome/localadvice/

Useful Links

General Information

Energy Saving Trust – general information about energy efficiency in the home
www.est.org.uk

Useful information for landlords about energy efficiency
www.cen.org.uk/landlords

Energy Efficiency: The Guide - everything you need to know about energy efficiency in your properties
http://www.est.org.uk/housingbuildings/localauthorities/theguide/

What to buy? Energy Saving Recommended products – a list of the most energy efficient household appliances and heating systems available
http://www.est.org.uk/myhome/efficientproducts/recommended/
Funding Information

A searchable database of grants available across the UK for improvements to energy efficiency
http://www.est.org.uk/myhome/gid/

The Landlords Energy Saving Allowance – an income tax allowance for private landlords
http://www.hmrc.gov.uk/budget2004/revbn31.htm

Details of the Warm Front grant (England only) – for energy efficiency measures if your tenants are in receipt of certain benefits
http://www.eaga.co.uk/Grants/warm_front.htm

Information about grants available for energy efficiency improvements across the UK if your tenants are in receipt of certain benefits
http://www.eaga.co.uk/Grants/central_gov-grants.htm

Technical Information

The Housing Health and Safety Rating System – What It Means For Landlords
http://www.odpm.gov.uk/index.asp?id=1152825
Technical guidance on integrating energy efficiency into property refurbishment and extensions
http://www.est.org.uk/housingbuildings/publications/index.cfm?mode=doctype&audtype=100

Making Private Rented Housing Energy Efficient – the Flagship Home case study
http://www.est.org.uk/download.cfm?p=1&pid=741

Information supplied by Paul Barrett on behalf of the Energy Efficiency Partnership for Homes, a not-for-profit organisation tackling energy saving issues (www.est.org.uk/partnership).