Landlords pushed to take green grants

Private landlords can claim £1,500 per property in tax breaks by carrying out eco-improvements.

The National Landlords Association (NLA) is urging property investors to take advantage of Landlord's Energy Saving Allowance (LESA).

Costs of improvements to properties, such as installing draught proofing, loft insulation, floor insulation, cavity wall insulation, solid wall insulation or insulation for hot water systems, can be recouped in part with the LESA.

David Salusbury, NLA chairman, said: "LESA is a welcome incentive for landlords to encourage them to make the necessary energy efficiency improvements.

"As well as contributing to the overall efforts by society to combat climate change, landlords may see an increase in the value of their investment as a result of energy efficiency improvements."

He went on to welcome moves from the government to offer incentives to encourage eco-improvements over regulation.

"We landlords to use the tax break or, perhaps, risk losing it in the future," he added.

If a landlord carried out improvements at a cost of £1,500, the saving could be as much as £600 for higher rate income tax payers and £300 for those who pay basic rate income tax.

The tax breaks came into force last year – but their value will be greater latter this year with the introduction of Energy Performance Certificate (EPC) for rental properties.

From October 1st 2008, all rental properties with a new tenancy in England and Wales will be required to have an EPC, so they can compare the energy efficiency of a property.

Daniel Barnes