Buy to Let Property Owners Face New "Green Tax" from October 2008

The Government has confirmed that from October 2008, landlords will be expected to provide energy efficiency certificates for rental properties costing an estimated £200 and requiring renewal every 3 years. Buy to Let investors face yet more red tape after already being forced to pay rental deposits through registered third parties earlier this year.

(PRWEB) May 11, 2007 -- There are currently around 850,000 landlords in the UK, and the Government confirmed this week that from next year, they could be forking out as much as £200 per property. The energy certification scheme will grade their properties' energy rating from A to G. These certificates are already to be included with the new Home Information Packs, launching in June this year, and will be required by Landlords from October 2008.

The certificates would be issued by trained energy inspectors and would need to be renewed every three years. As yet there have been no guidelines set out by the Government for the certificates, and this has already caused some consternation with critics of the Government's HIP's including the shadow housing minister Michael Grove who felt that the lack of regulation would cause problems with home owners as they struggle with further red tape.

Under European law, energy inspections are only required every 10 years, those required by buy to let landlords will require an update every 3 years. The Government says that producing more frequent certificates will increase the energy efficiency of rental properties. Ten per cent of all mortgages are sold to buy to let investors and those with newer properties such as purpose built apartments will not face the same complications or penalties as those favouring older properties that are less well insulated.

Home Information Packs have faced widespread criticism relating to the added cost to vendors, the usefulness of the information contained within them and the lack of qualified inspectors needed to carry out the inspections. There are signs that the impending deadline for the packs has caused some home owners to put their property on the market earlier as HIP's could cost some home owners as much as £700 once the searches and certificates have been added. Landlords have already had to adhere to a new directive that requires them to deposit their tenants deposits in a separate account held by a third person.

James Hewson, buy to let specialist at Grovelawn Financial http://www.grovelawnfinancial.co.uk said, "These charges are just another way of penalising people who are investing in property. Many of my clients see property investments as a way to prop up their income in their old age and are being penalised for doing so." Mr Hewson tracks buy to let rates for his clients and offers these on the specialist buy to let website http://www.best-buy-to-let-mortgages.com.

###