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RLA Hopes to Meet Ministers Regarding Euro Tax Rule Change
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The Residential Landlords Association (RLA) is hoping to meet with ministers following a European Court of Justice ruling that will make it more expensive for landlords to make their rental properties energy efficient.
RLA Hopes to Meet Ministers Regarding Euro Tax Rule Change
On Thursday, the Court ruled that the lower 5% VAT rate charged on energy efficiency products breached EU law and can only be used for social housing. All other housing tenures, including private rental homes, must pay the higher 20% VAT rate.
This news arrives just months after the Government ended the Landlord Energy Savings Allowance, which helped landlords improve the energy efficiency of their rental properties. 20 groups representing landlords, tenants and energy efficiency organisations actively opposed the abolishment.
Government data reveals that 32% of all private rental property was built prior to 1919, meaning it is some of the most difficult housing to insulate. Only 24% of homes in the sector have cavity wall insulation and just 25% have 200mm or more loft insulation.
The RLA has urged the minister responsible for energy efficiency, Lord Bourne, to meet with them immediately to determine how landlords can be supported to meet the energy efficiency requirements of the private rental sector.
Alan Ward, the RLA Chairman, says: “The RLA fully supports efforts to improve the energy efficiency of the country’s housing stock. The judgment of the European Court of Justice, however, jeopardises efforts to do so.
“Private rented housing faces some of the most difficult challenges in improving its energy efficiency given the age of the stock and needs greater not less support to meet the Government’s ambitions on home insulation.
“We are calling on ministers to give serious consideration about a way forward that supports landlords and tenants alike.”1
1 http://www.landlordtoday.co.uk/breaking-news/2015/6/euro-rule-tax-blow-to-landlords
