The European Court of Justice ruling has made it more costly for landlords to insulate their privately rented houses according to a report on Landlordzone.co.uk

Prior to the ruling the VAT level was at the lower 5 per cent level but this will be increased to the higher rate of 20% under the ruling.  The exception to this will be where the energy efficient products are to be used for social housing, when the lower level will apply.

According to the article government statistics show that 32 per cent of private rental sector properties are pre 1919 and are the most difficult house stock to insulate.  Only a quarter of privately rented houses have suitable loft insulation and a slightly lower percentage having cavity wall insulation.

In the article the Residential Landlords Association (RLA) Chairman said “The RLA fully supports efforts to improve the energy efficiency of the country’s housing stock. The judgement of the European Court of Justice however jeopardises efforts to do so.”

The RLA has written to Lord Bourne, Minister for energy efficiency to urge the government to provide support for landlords saying “Private rented housing faces some of the most difficult challenges in improving its energy efficiency given the age of the stock and needs greater not less support to meet the Government’s ambitions on home insulation.”

Back in February we blogged about new proposals currently being looked at by ministers to force landlords to improve the energy efficiency of their properties from 2018 and with this new EU ruling it looks like landlords could face an even more expensive future in order to bring their properties in line with proposed regulations.  We would advise that landlords take into account any unexpected financial expenses when considering investing in the private rental sector as well as the usual additional costs such as landlord property insurance.  For more information about landlord property insurance from Click4quote.com why not get a quote online today and see how we can provide protection for your property investment