In a recent review of the government’s green policies, Prime Minster Rishi Sunak has decided to scrap the proposed introduction of stricter minimum energy efficiency standards for rental properties.
The original proposed changes set out that all tenanted properties, both existing tenancies and new ones, would need to have an EPC rating of at least band C from 2028. However, this has now been scrapped after a review by the government. The current rules which have been around since 2018 set out that all let properties must have an EPC rating of at least band E.
Whilst it is now not a requirement for landlords to have an EPC rating of at least band C in their rental properties, Rishi Sunak has said that he will still ‘encourage households to do so where they can’. Of course, there is a General Election not so far away and a new Government could take a different view.
What does this mean for landlords?
Landlords may see this as positive news as they are no longer required to invest in raising the energy efficiency standards of their property. However, some landlords have already invested considerable sums knowing these changes were on the horizon and will now feel that they have been unfairly treated. However, if landlords want to remain competitive in the market it may well be worth improving the energy efficiency of their properties anyway as they should be more appealing to potential tenants because they will spend less on their energy bills.
How can we help?
Having an accountant who understands the challenges of this dynamic sector and is able to help you plan for the future is an advantage in a competitive environment. At Hawsons we have a great deal of experience in advising and helping businesses in property and construction and we can assist you as your business grows.
Our in-house tax team has advised in many aspects of taxation specific to the property investor including in the areas of VAT, Capital Allowances, Income Tax, and Corporation Tax and Capital Taxes.
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