Exchequer Secretary to the Treasury Angela Eagle has announced that the Government's plans to extend the Landlord's Energy Saving Allowance (LESA) to corporate landlords have been given formal state aid approval by the European Commission.

The scheme, which provides incentives for landlords to improve the energy efficiency of their properties, is expected to save at least 150,000 tonnes of CO2 in 2010/11. From 8 July 2008 private landlords will be able to claim up to £1,500 a year per property against the cost of purchasing and installing energy-saving items such as floor insulation and draught proofing.

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Welcoming the extension of LESA, Angela Eagle said: "Landlords and tenants both gain from the Landlord Energy Saving Allowance. It provides an incentive for landlords to invest in making their properties more energy efficient, and for their tenants it means lower energy bills, which will be particularly welcomed in the context of the current increasing domestic fuel costs.

"It is estimated that 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. Since its introduction in 2004, the LESA has made a significant contribution to carbon savings, and this extension should save at least an additional 150,000 tonnes of CO2 once the change is implemented, demonstrating the environmental benefit of investing in energy efficiency."

(CD/JM)