The European Court of Justice has announced that insulation for rental housing in the private sector will no longer be eligible for the lower 5% VAT charged on energy efficiency products – which will now legally only apply to insulation products used for social housing.
Social housing website 24Dash.com reports that private sector landlords are calling for urgent talks with EU ministers in the wake of the announcement, which means private landlords will have to pay 20% on insulation products for rental properties in the private sector.
In recent months, the government has also scrapped the Landlord Energy Savings Allowance – which provided vital support for improving the energy efficiency of private rented housing.
Around 20 groups representing landlords, tenants and energy efficiency organisations opposed the move.
The Residential Landlords Association (RLA) says it has now written to the minister responsible for energy efficiency – Lord Bourne – seeking “an urgent meeting” to establish how best the private rental sector can be supported to meet energy efficiency challenges it faces.
Government figures show that 32% of all private rented housing stock was built before 1919 – with the result that it is some of the hardest housing to insulate properly.
The figures also show that just 24% of rented homes in the private sector have cavity wall insulation – and only 25% have 200mm or more of loft insulation.
Rents in the private sector have rocketed in recent years and private landlords are increasingly under pressure to provide safe and well-maintained homes to rental tenants, complying with green energy standards.
Many older homes are poorly insulated – or are not insulated at all – and are cold, draughty and leak energy and heat, making them harder to keep warm and dry.
Chairman of the Residential Landlords Association, Alan Ward, said:
“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.”
Duncan Lewis Housing Solicitors
Duncan Lewis housing solicitors can advise rental tenants in the private sector on a wide range of housing matters, including disrepair and landlord’s duty to repair.
Duncan Lewis can also advise private sector landlords on their legal duty to tenants and other matters, including:
• Antisocial behaviour
• Landlord & tenant disputes
• Section 146 Notice (notice to quit)
• Tenancy agreements
• Unlawful eviction.
For expert legal advice on private rental housing issues, call Duncan Lewis housing solicitors on 020 7923 4020.