The group, made up of Mortgage Advice Bureau, TSB, Leeds Building Society, and Coventry Building Society, proposes a stamp duty refund for homebuyers who retrofit their property to achieve an Energy Performance Certificate (EPC) rating of C or higher.

This incentive, the group insists, would make energy efficient upgrades more affordable, support the UK’s net zero goals, and provide much-needed momentum to the housing sector.

The group argues that a full or partial stamp duty refund for buyers of energy-inefficient homes to an EPC rating of C or above would make these homes look attractive to buyers, and help to catalyse a greater level of upgrading of UK housing stock.

The measure would also directly contribute to the UK’s 2050 net zero targets by promoting greener homes.

Despite the previous government setting a goal to ensure that most homes achieve an EPC rating of C or above by 2035, 60% of housing stock remains below this standard. In fact, 16 million properties in England and Wales will require retrofitting to meet this EPC benchmark.

Commenting on the open letter being sent to the government Mortgage Advice Bureau deputy chief executive Ben Thompson said: “We’re writing to the government as we want to collectively work together alongside the industry to accelerate the improvement of energy efficiency in the UK’s housing stock. This will not only benefit homeowners and renters by reducing their energy bills and carbon footprint, but also contribute to a more sustainable and resilient economy. “

He added: “A more energy efficient housing market can stimulate investment in green technologies, create jobs, and reduce our reliance on fossil fuels further. We urge the Chancellor of the Exchequer to consider these Stamp Duty reforms to help achieve both economic and environmental goals.”