The LESA is a tax break that allows landlords to claim on their tax return against the cost of buying and installing energy saving items. Landlords can claim a maximum of £1,500 per property against the cost of installing draught proofing, loft insulation, floor insulation, cavity wall insulation, solid wall insulation or insulation for hot water systems.

The NLA has highlighted that as of 1 October 2008, all rental properties with a new tenancy in England and Wales will be required to have an Energy Performance Certificate (EPC), which will enable prospective tenants to see how energy efficient a property is.

David Salusbury, chairman of the NLA, said: “LESA is a welcome incentive for landlords to encourage them to make the necessary energy efficiency improvements. As well as contributing to the overall efforts by society to combat climate change, landlords may see an increase in the value of their investment as a result of energy efficiency improvements.

“We are pleased that the Government has chosen to offer incentives to landlords instead of regulation and would urge landlords to use the tax break or, perhaps, risk losing it in the future.”