Stamp duty must be refunded for owners who insulate homes, MPs urge Hunt
- Chancellor Jeremy Hunt has been urged to introduce the stamp duty rebate
- MPs and think tanks say it should be given to those insulating their homes
Chancellor Jeremy Hunt (pictured) has been urged to reintroduce the stamp duty rebate for homeowners who insulate their homes
Jeremy Hunt is facing fresh calls to introduce a stamp duty rebate for homeowners who insulate their property within two years of purchase.
In a bid to drive green improvements, MPs and think tanks are urging ministers to back a ‘Rebate to Renovate’ tax refund scheme.
A new report from the Better Homes Alliance, published today, shows that many households are unlikely to be able to cover the initial costs of renovation – ranging from £8,000 to £12,000.
Yet research from the group shows that improving a home’s energy efficiency – from loft insulation to double glazing – can save £348 a year on the average household’s energy bills.
The alliance said the government must take the lead in showing how tax incentives can help homeowners improve their homes and reduce carbon emissions – with MPs and civil servants considering the policy.
Polls show there is widespread support for the idea, with six in 10 people with a mortgage saying they would be likely to upgrade their properties if they were rewarded with a stamp duty cut.
This number increases to almost seven in ten if these improvements lead to a reduction in their energy bills.
Commenting on the research, senior Tory MP Damian Green said: ‘Tackling housing affordability and climate change are both major challenges.
“As Conservatives, we must look for solutions that incentivize, rather than punish, individuals to improve the energy efficiency of their homes.”
Adam Hawksbee, associate director at Onward, said: “Homeowners want to make improvements to their properties, but many people are unable to do so due to the significant costs involved.
‘This is especially true for people living in low-value homes in poorer parts of the country.
‘We need to find ways to encourage, not penalize, people to renovate their homes. That’s why the Government should consider the idea of a renovation discount, a practical solution that will help reduce energy bills and decarbonise our inefficient housing stock.”
Ryan Shorthouse, executive chairman of Bright Blue, added: ‘We need stronger policies to ensure households modernize their homes with the necessary energy efficiency measures and low-carbon technologies.
“It makes sense to have a strong incentive at the time of moving into a home, because this is the time when homeowners are likely to be open to major improvements.”
The proposal was previously supported by Lloyds Bank and the owner of B&Q.
