Carbon incentives extended to commercial landlords
Last Updated : 7/28/2008 5:01:30 AM
Source : AboutProperty.co.uk - London, UK

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The government has announced the carbon reduction incentives presently offered to residential landlords are to be extended to commercial proprietors. Following an announcement by the exchequer secretary to the Treasury, Angela Eagle, the government has confirmed the Landlord's Energy Saving Allowance (LESA) is to be introduced for corporate landlords. The scheme has also been given formal state aid approval by the European Commission. The scheme is expected to save at least 150,000 tonnes of carbon dioxide from 2010. From July 8th, 2008, private landlords will be able to claim up to ?1,500 a year per property against the cost of purchasing and installing energy-saving items, such as floor insulation and draught proofing. "Landlords and tenants both gain from the LESA," said Ms Eagle. "It provides an incentive for landlords to invest in making their properties more energy efficient, and for their tenants it means lower energy bills, which will be particularly welcomed in the context of the current increasing domestic fuel costs." Over a quarter of the UK's carbon emissions come from residential properties. In response, the government has introduced a range of initiatives to encourage household energy efficiency over recent years. There is a particular need for action targeted at the residential rented sector, since properties typically produce more carbon per year than other homes. The LESA was introduced in the Finance Act 2004 but was restricted to residential landlords. The extension to include corporate landlords was announced in the 2006 Pre Budget Report and legislated in the 2007 Finance Act