Proposed stamp duty cuts for energy efficient homes
By Vin Parmar on 2 Nov 2017 in Industry News
The Government is considering cuts to stamp duty on house sales if homeowners improve the energy efficiency of their homes. This forms part of the Clean Growth Plan, which focuses on ways to reduce carbon emissions. It’s confirmed by climate change minister Claire Perry that cutting stamp duty is one of the options under consideration.
What energy rating is expected?
By 2035, the Government wants all UK’s homes to have at least a Band C energy efficiency rating. Currently, properties for sale must have a valid Energy Performance Certificate (EPC) graded between A (best) to G (worst).
Will this increase the value of your home?
The Government thinks cutting stamp duty will encourage homeowners to go greener and boost the value of their property when they come to sell it. Ms Perry, said: “I think it’s more likely that a home where insulation has been put in would attract a higher value, because the running cost of that home over the lifetime of ownership would be lower.”
She also spoke about rental properties and the expectations they have on landlords. She said: “We have been very clear that in, for example, the worst energy efficient rented homes we are expecting landlords to upgrade those to be a better efficiency standard.
“What we also need to know is at the moment there is no value if you go to take out a mortgage or indeed to remortgage your property for the sorts of energy efficiency improvements that actually mean your ability to pay that mortgage is better.”
Ministers and think tanks have urged Chancellor Philip Hammond to cut stamp duty in his Autumn Budget this month. Think tank, The Adam Smith Institute says stamp duty creates social problems by preventing families from moving home. Instead, the institute thinks the Chancellor should raise Council Tax on the most expensive homes.