Friday 27 October 2023

Call for stamp duty cut to boost energy efficiency

Call for stamp duty cut to boost energy efficiency

Prominent voices are advocating for a stamp duty cut in the UK, not the first time this measure has been discussed.

However, the current proposal focuses on a specific objective: encouraging homeowners to improve the energy efficiency of their properties.

Referred to as the 'Rebate to Renovate,' this policy has earned support from key players in the conservative sphere, including Onward, Bright Blue and the Conservative Environment Network.

Under this scheme, individuals would be eligible for a stamp duty rebate if they enhance the energy performance of their homes within two years of purchase.

This push for energy efficiency comes in light of new research by the Better Homes Alliance, a consortium of organisations including Lloyds Banking Group, E.ON UK, Santander, Kingfisher, Knauf Insulation and the Energy Efficiency Infrastructure Group.

The findings reveal that nearly 59% of homes in England are considered energy inefficient, as measured by Energy Performance Certificates (EPCs), with the UK's housing stock contributing almost a quarter of the nation's carbon dioxide emissions.

According to the report, 19 out of 20 local authorities with the least energy-efficient housing fall within "levelling up" areas and 12 of them are in the most high priority regions.

Adam Hawksbee, Deputy Director at Onward said: "We need to find ways to incentivise, not penalise, people to retrofit their homes.

"That is why the government should consider the idea of a Rebate to Renovate, a practical solution which will help bring down energy bills and decarbonise our inefficient housing stock."

A government spokesperson told Energy Live News: "Thanks to government support, the number of homes with an energy efficiency rating of C or above has gone from 13% in 2010 to 46% and rising.

"We are investing over £6.6 billion in this parliament with a further £6 billion committed to 2028 to reduce energy demand from buildings and industry by 15% by 2030.

"The Energy Company Obligation will help hundreds of thousands of families with energy-saving measures such as insulation, with average energy bill savings of around £300 a year."

Written by

Sumit Bose

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