Prominent lenders and mortgage brokers are calling on the Chancellor of the Exchequer to introduce key reforms to Stamp Duty in the upcoming Autumn Budget, aimed at boosting energy efficiency in properties and stimulating the housing market.
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 would make energy efficient upgrades more affordable, support the UK’s net zero goals, and provide much-needed momentum to the housing sector.
Why:
Stamp Duty refund: A full or partial 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.
Supporting net zero: This measure would directly contribute to the UK's 2050 net zero targets by promoting greener homes
Boost to housing market: It would encourage more property transactions and help buyers afford the necessary energy improvements.
Despite the previous UK Government setting a goal to ensure that most homes achieve an Energy Performance Certificate (EPC) rating of C or above by 2035, 60% of our housing stock remains below this standard. 16 million properties in England and Wales will require retrofitting to meet this EPC benchmark.
Direct emissions from buildings have exceeded 85 MtCO₂e, with a significant proportion attributed to the burning of fossil fuels for heating. Buildings are also responsible for nearly 60% of the UK’s electricity consumption.
Ben Thompson, Deputy CEO at Mortgage Advice Bureau, 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.
“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."
