The Government is being urged to help homeowners go green and reintroduce mortgage interest relief as a way of boosting rental supply.
It comes as part of a range of suggestions from the agency trade body Propertymark ahead of the chancellor’s Budget on 15 March.
The organisation said one of the biggest challenges for the private rented sector is that the demand far outweighs supply and suggested a chief reason for landlords exiting the market is because of Section 24 and the phasing out of mortgage interest relief.
It said: “Propertymark believes that a generous estimate of reintroducing mortgage interest relief would cost the UK Government £1bn.
“However, not only would this increase supply and drive down rents but would be a medium-term commitment to reducing the £30bn spent annually on housing benefits, which is between £8bn and 10bn more than the Office for Budget Responsibility forecast.”
The trade body has also called for more support to help landlords and homeowners make their homes energy efficient.
It said: “The UK Government has invested £1.5bn to decarbonise 130,000 homes in the social sector.
“However, similar support for renters and homeowners – through the Green Homes Grant – was hampered by bureaucracy and inefficient management.
“Propertymark has said that it is imperative that lessons should be learned from the Green Homes Grant and support landlords and homeowners to decarbonise through incentives.”
Timothy Douglas, head of policy and campaigns at Propertymark, said: “The property industry is uniquely placed to support the levelling up of our country and communities as we build back better from the social and economic impacts of both the coronavirus pandemic and the ongoing cost of living crisis.
“The industry can also make a significant contribution to increasing supply to meet the demand in the private rented sector by incentivising landlords to enter and stay in the market by repelling Section 24 with the reintroduction of Mortgage Interest Relief. Our Budget asks will also contribute towards increasing housing options and supporting landlords and homeowners reach net zero through grants.”
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Hey Propertymark - keep up with the times guys!! The Government is launching the Eco Plus scheme in just a few weeks time. Lots of grants, subsidies and handouts that Propertymark has been calling for. The Government is dumping 'Helicopter Cash' on those who want to improve their rental investment properties and their own homes. It's NOT means tested and you just need to be EPC Grade D or lower and be a in lower Council Tax band. Propertymark, your market intervention dreams have come true!! Will you be issuing a Press Release saying how POSITIVE you think Eco Plus will be and that the Government has actually listened and acted? Bet you don't.
21,000,000 domestic EPCs now on the national database - epcregister . com
1,000,000 commercial EPCs now on the national database - about 95% of all commercial rental buildings
Domestic landlords have to pay £65 once every 10 years for an EPC. It's the lowest cost compliance inspection we have to obtain.
The robust national database is the greatest detailed survey of the country's building stock since William the Conqueror commissioned the Domesday Book in 1086. It was used after the Grenfell Tower disaster to accurately identify all high-rise apartment blocks. This information was obtained for the Prime Minister within 60 minutes of her request.
The straightforward domestic EPC is a 'running cost' calculation. It has been since 2008. Occupiers of houses and flats firstly want to know their likely energy bills NOT carbon dioxide emissions. The certificate is very much 'fit for purpose'. It always has been. They are prepared by a nation-wide group of trained and qualified energy efficiency assessors who are audited by the Government to ensure accuracy. Have anyone on this site actually spoken to their energy assessor or paid extra for their professional advice? I have on many occasions for my rental units.
The commercial EPC is a 'carbon dioxide' calculation. The clear MEES Regs for commercial buildings has already and will continue to massively improve the UK building stock. Solely because of EPCs and MEES I have been improving my commercial rental units, with the aim to get them all up to Grade B within the next 3 years.
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