Prominent lenders and mortgage brokers are calling on Rachel Reeves to introduce major stamp duty reforms in the upcoming Budget, aimed at boosting energy efficiency in homes and boosting the housing market.
Ben Thompson, Mortgage Advice Firm
The group, made up of Mortgage Advice Bureau, TSB, Leeds Building Society and Coventry Building Society, is proposing a stamp duty refund to homebuyers who renovate their property to achieve an Energy Performance Certificate (EPC) rating of C or above.
This incentive, the group insists, would make energy efficient upgrades more affordable, support the UK’s net zero targets and give the housing sector a much-needed boost.
The group argues that a full or partial refund of stamp duty for buyers of energy inefficient homes with an EPC rating of C or higher would make these homes look attractive to buyers, and help ensure a higher level of modernization of the UK catalyze housing stock.
The measure would also directly contribute to the UK’s 2050 net zero targets by promoting greener homes.
Even though the previous government set itself the goal of ensuring that most homes achieve an EPC score of C or higher by 2035, 60% of the housing stock remains below this standard. In fact, 16 million properties in England and Wales will need to be renovated to meet this EPC benchmark.
Responding to the open letter sent to the Government, Mortgage Advice Bureau deputy director Ben Thompson said: “We are writing to the Government because we want to work collectively with the sector to improve energy efficiency in the UK housing stock to speed up. . 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 boost investment in green technologies, create jobs and further reduce our dependence on fossil fuels. We urge the Chancellor of the Exchequer to consider these stamp duty reforms to help achieve both economic and environmental objectives.”