Corporate landlords 'to benefit' from energy saving allowance extension

The Treasury has announced plans to extend a scheme designed to encourage landlords to undertake environmentally-friendly home improvements.

Under the Landlord Energy Saving Allowance (Lesa) programme, owners of rental accommodation can apply for tax reductions of up to £1,500 per property in order to fund the installation of energy-efficient measures such as draught proofing and insulation.

As well as helping tenants to reduce their energy bills, the Treasury hopes the scheme will result in a 150,000-tonne annual reduction in CO2 emissions from properties by 2010-11.

Exchequer secretary to the Treasury Angela Eagle said tenants and the environment have been benefiting from Lesa since its launch in 2004.

She added: "Over a quarter of the UK's carbon emissions come from residential properties and the Lesa is one of the measures the government has introduced to support greater energy efficiency in the household sector."

The government announced in 2006 that the Lesa scheme was to be extended from its original scope for providing tax rebates for loft and cavity wall insulation to include hot water system insulation.