Money News
Many buy to let landlords are running the risk of incurring unnecessary fines, with over half admitting that they are unaware of new energy efficiency requirements for rental property from October.
Research from Paragon Mortgages has found that 55% of landlords do not know that they will be legally required to provide prospective tenants with an Energy Performance Certificate from 1 October 2008. Failure to comply with the regulations could result in a £200 fine and prevent the landlord from marketing a property, resulting in unnecessary void periods.
Paragon research also reveals landlords are unaware of the financial help available to improve a property's energy performance, with 86% admitting that they hadn't heard of the Landlord Energy Saving Allowance (LESA). The LESA is a tax allowance that lets landlords claim up to £1,500 on their tax return against the cost of buying and installing energy saving items, such as cavity insulation.
John Heron, Paragon Mortgages' managing director, says, "Landlords need to ensure they are ready for October 1, otherwise they could find they cannot market their property for let. Burying your head in the sand is not an option.
"Making sure you have an EPC in place early will reduce the threat of void periods, as well as avoiding the possibility of an expensive fine. The Government has targeted domestic energy use as a way of reducing carbon emissions and landlords have to play their part."
15 July 2008 © Moneyextra.com
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