Tax incentives for landlords who become accredited

04 Sep 2014

Landlords who sign up to a recognised accreditation scheme should be rewarded with enhanced tax relief. That’s just one proposal to emerge from a new report published by the Chartered Institute of Housing and The Resolution Foundation.

In calling for a stronger role for accreditation and incentives, the report recommends:

The development of a nationally agreed set of standards for accreditation

  • Enhanced tax relief should be available to accredited landlords compared to those who remain unaccredited
  • ‘Unconditional incentives’ should be offered to all landlords who make physical improvements to their properties

The report also advocates the development of stronger measures to tackle poor practice by some landlords.

To achieve this end, the report recommends:

  • A review of the statutory minimum standards to which landlords are subject and the arrangements for enforcing them
  • Regulation of letting agents and an end to the practice of charging tenants fees for their services

Research conducted by Endsleigh highlights the potential for accreditation to raise standards. It found that experienced landlords are more likely to appreciate the importance of accreditation. 8.4% of those landlords with less than a year’s experience were accredited, as opposed to over a quarter (26.2%) of those with more than 10 years’ experience.

This suggests that there will be a growing appetite for accreditation in the coming years, which will only be accelerated if the appropriate incentives are put in place.

Patrick Taylor

Written by: Patrick Taylor an Endsleigh colleague.