The Landlord’s Energy Saving Allowance (LESA) is a tax allowance which allows landlords to claim tax relief of up to £1,500 on their tax return against the cost of buying and installing energy saving items.
It was first introduced in April 2004 to encourage landlords to improve the energy efficiency of let residential properties and to increase the level of comfort for tenants.
With the scheme due to run until the start of April 2015 landlords have plenty of opportunity to claim the allowance over the next four years.
However, Graham Kinnear, managing director at Landlord Assist, is concerned that uptake for the allowance is low as landlords are simply unaware it exists. As a result many properties throughout the UK still have significantly low energy performance ratings.
Kinnear said: “Many landlords I speak to are simply unaware that this support is available. Not only does the LESA help landlords with the initial cost of buying and installing new products, which will help to increase the long-term value and rental potential of the property, but it also allows them to enjoy the cost saving benefits of reducing tenants’ energy bills.”
Stephen Parry, commercial director at Landlord Assist, added: “It is most welcome that the government provide some support and incentive to the rented sector and we urge landlords to take full advantage of this scheme. Landlords can benefit from the saving on cavity wall insulation, loft insulation, solid wall insulation, draught proofing, hot water system insulation and floor insulation.”
Landlord Assist suggests that landlords considering installing energy saving measures should also consult their local authority or energy supply company to establish whether grants from public funds are also available.