In This Article:
Homeowners should get stamp duty refunds if they make energy upgrades to their homes, lenders have urged Rachel Reeves.
Mortgage lenders and brokers called on the Chancellor to use her Budget on Oct 30 to reimburse tax on house purchases if buyers retrofit their new homes to make them more energy efficient.
In an open letter to Ms Reeves, lenders including TSB, Leeds Building Society and Coventry Building Society urged the Government to offer bigger incentives to help homeowners make urgent upgrades as part of the UK’s drive to get to net zero carbon emissions by 2050.
Homeowners should either receive their stamp duty bill back in full once they have completed works, or get a rebate for the cost of any works that they undertake, the letter said.
Other signatories included Paragon Bank, Aldermore Bank, the Mortgage Advice Bureau and the Association of Mortgage Intermediaries.
The previous government set a goal that the majority of homes in the country will have an Energy Performance Certificate rating of C by 2035.
Labour has also said it will reintroduce a requirement for buy-to-let landlords to make sure their rental properties hit this minimum benchmark five years earlier in 2030.
However, 60pc of our homes are still below this standard, meaning 16m properties across England and Wales require retrofitting works such as new insulation.
These upgrades will be essential for the UK to meet its climate goals as buildings are responsible for more than half of national electricity consumption.
“We must recognise that in many instances, these upgrades will be substantial, potentially exceeding previous cost caps for landlords,” the letter warned.
Without financial incentives from the Government, landlords who are forced to undertake work to continue letting their properties may pass on the costs to tenants through higher rents, it added.
Ben Thompson, deputy chief executive at the Mortgage Advice Bureau, said: “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.
“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.”
Homeowners will require “far greater” support if the Government wants them to make their homes more energy efficient, the letter warned Ms Reeves.
Stamp duty incentives will also boost property transactions, the letter said.