Campaigners push for green stamp duty incentive | Mortgage Strategy

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One in six homeowners are planning to improve the energy efficiency of their property in the next five years, new research reveals amid calls for the government to introduce a green stamp duty incentive.

The Energy Efficiency Infrastructure Group (EEIG), made up of industry and consumer representatives, is urging ministers to offer tax breaks to encourage buyers to opt for greener homes.

Its survey found that only 16% of homeowners have serious plans to improve the energy efficiency of their properties within the next five years. 

The group found that just 13% of UK homeowners strongly considered the energy efficiency of their home at the point of purchase and 8% of respondents strongly believe that the government is doing enough to encourage people to reduce emissions from their homes.

Under a green stamp duty incentive the EEIG proposes that homes with the best energy efficiency ratings would be subject to lower tax.

In a bit to encourage improvements, home buyers who carry out works to upgrade the efficiency of their home within 24 months of purchase would be able to claim a rebate for some of their stamp duty bill.

EEIG spokesman David Adams says: “Even with worries about energy supply, rocketing energy bills and climate change in the press daily, it’s clear from our research this isn’t prompting the magnitude of demand for home energy performance improvements necessary to solve these problems.  

“Clearly, government intervention is necessary to change this trajectory, but so far short-term initiatives have failed to deliver the kind of sustained take-up necessary.

“This is why, in the absence of any other viable approach to stimulate and support owner occupiers to act at scale, the EEIG is advocating for the government to deliver a green stamp duty incentive. 

“This will make energy efficient homes cheaper to buy and will remind those who are buying a lower performing home of the improvements that are likely to be necessary during their period of ownership. 

“It will also encourage people to start thinking about potential improvements to their homes at the time of purchase and plan ahead to realise the rebate.

“It’s necessary that this type of policy is adopted rapidly to be fair to homeowners and to give the government the chance to reach its target of a 78% reduction of UK greenhouse emissions by 2035.”


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