Help for green improvements but not for struggling renters on benefits
A VAT cut on solar panels and heat pumps has been welcomed by the sector but there’s frustration that the Chancellor ignored the impact of rising rents in his spring Budget.
Rishi Sunak announced he was cutting the 5% rate on energy saving materials to 0% for five years to help households improve energy efficiency and keep heating bills down. He promised the changes, which take effect from April, would save a typical household more than £1,000 to have roof-top solar panels installed.
Product demand
Jonathan Murton, director of energy efficiency consultants Murton & Co, says the rise in energy prices had already increased demand for products and adds: “I suspect there will be frustrations though as we are already seeing orders not yet fulfilled due to increasing backlogs and lead times.”
Elsewhere in the Budget, the Chancellor announced he was cutting fuel duty by 5p and reducing the basic rate of income tax from 20p to 19p in the pound from 2024. He also raised the threshold for the amount people earn before they pay National Insurance to £12,570 a year.
Cost-of-living crisis
The National Residential Landlords Association is disappointed that the government has again failed to explain what was required of the rental sector when it comes to energy improvements.
Chief executive Ben Beadle says: “More broadly, as renters, along with all others, face a cost-of-living crisis, the Chancellor should have reversed his decision to freeze housing benefit rates. Without this, those relying on the benefit will find it increasingly difficult to afford their rents.”
Alicia Kennedy, director of Generation Rent, adds: “When inflation is running at 7.4%, the Chancellor should have targeted help towards those least able to manage, by raising benefits at the same rate and making sure Local Housing Allowance covers rising rents. If he wants economic growth, the Chancellor should be shifting taxation from work to property wealth.”
©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Help for green improvements but not for struggling renters on benefits | LandlordZONE.
