Energy Saving Stamp Duty Incentive
PHT joins a coalition calling for Energy Saving Stamp Duty Incentive. How can we incentivise homeowners to improve their homes beyond one-off, shorter-term grants for specific technologies?
The Trust is 1 of 41 organisations across the built environment sector, led by the Energy Efficiency Infrastructure Group (EEIG), that have written to the Chancellor, calling on the UK Government to support a long-term, revenue-neutral Energy Saving Stamp Duty Incentive – to encourage homeowners to future-proof their homes against high energy bills.
With the energy price cap set to rise by 51% on 1 April 2022, the looming energy price crisis has brought the UK’s dependence on imported gas into stark relief. COP26 also highlighted the urgency for action to reduce emissions from homes, which have risen over the last six years and now account for 20% of the UK’s carbon emissions.
An Energy Saving Stamp Duty would incentivise the 19 million owner-occupied households to insulate their homes and install energy-efficient heating systems such as heat pumps.
The Energy Saving Stamp Duty can be revenue neutral - freeing up more public funding to be directed towards those that don’t have the means or access to finance.
The tax incentive is backed by a broad range of consumer, retail, builder and business groups representing tens of thousands of businesses, professionals and consumers. The incentive would encourage people to either purchase a more energy-efficient home or incentivise them to make it more energy-efficient after it had been purchased, for example by installing insulation or a heat pump. Households would be charged a lower level of stamp duty for doing so.
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Government should focus on how people could be rewarded for saving energy. Circa one million homes change hands in the UK every year. Stamp Duty already exists and, for owner-occupiers that have means or access to finance, an Energy Saving Stamp Duty Incentive would complement or sit comfortably alongside a grant programme whilst also being revenue-neutral. It could be transformational.”
David Adams, EEIG
With so many millions of homes to retrofit, this long-term structural incentive is necessary to engage and prepare the market, with businesses and government working together to create a thriving industry, building a resilient supply chain and boosting energy security. Crucially, millions of homeowners will have their energy bills slashed and benefit from warmer, more comfortable homes which use less energy and cost less to run.”
Sarah Kostense-Winterton, EEIG
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Further Information
Energy Saving Stamp Duty Land Tax
26th January 2022
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