The HM Treasury has been told by an association, not to scrap taxable allowances for landlords delivering energy saving improvements on their rental properties.

The association say that the reason why there is little take up by landlords to ensure energy efficiency schemes being implemented, because Green Deal loans are much too costly. This claim has been further  endorsed by the Energy and Climate Change Committee as one of the main reasons as to why Green Deal has been such a failure.

A spokesman for the association  said: “The Green Deal is failing to work for landlords or tenants because the seven percent interest charge is excessive.

“To encourage better uptake of energy efficiency work, the Government should retain the Landlord’s Energy Savings Allowance (LESA) instead of phasing it out in favour of non-viable loans at seven percent interest. The availability of LESA should be extended beyond 2018 and cover £5000 per annum spend for each property, as opposed to the current £1500.”

It would like to see a new range of incentives to encourage landlords with incentives to help them improve the energy efficiency of their rental properties. One of the new incentives would be a new methodology for Energy Performance Certificates that would properly consider older rented accommodation, so it is not unfairly taken out of use.