NatWest is calling for a rebate on stamp duty to fund green home improvements across the country. The bank is suggesting that the government bring in specific policies such as a Green Stamp Duty, which can be more targeted towards key periods of time when people are looking at home improvements. This comes amidst a study from property tax experts Cornerstone Tax which shows that 45% of homeowners have looked into making their home more energy efficient but found it too expensive without government support. Despite the cost of living crisis, homeowners are looking to invest in energy-efficient upgrades that can reduce their carbon footprint and also save money on energy bills in the long run.
According to the Committee on Climate Change, the average UK home emits 2.7 tonnes of CO2 every year from heating their home, and making energy-efficient upgrades can help reduce this number significantly. Examples of such upgrades include insulation, double-glazing, and efficient heating systems.
These upgrades can reduce carbon emissions by as much as 20 percent, helping the UK meet its target of net-zero carbon emissions by 2050, as the study from Cornerstone Tax shows that 36% of homeowners think that making their home more energy efficient is a priority for them. The government has established £12.6 billion worth of support for energy efficient measures as the number of homes with an energy efficiency rating of C or above has increased from 13% in 2010 to 46% this year.
In addition to the environmental benefits, green home improvements can also increase the value of a property. A study by the Royal Institute of Chartered Surveyors found that energy-efficient upgrades can add up to 6 percent to a property’s value. Meaning that not only are homeowners reducing their carbon footprint, but they are also increasing the value of their investment.
The latest survey from the Royal Institution of Chartered Surveyors shows that 61% of the agents and surveyors polled reported that homes with high energy efficiency aren’t suffering from the house price falls. Adding to this, sellers are looking to take advantage of their home’s energy efficiency as four-in-ten institution members reported that sellers of eco-friendly houses were trying to attach a price premium.
NatWest suggests that a stamp duty rebate could encourage more homeowners to invest in green home improvements, providing a significant financial incentive for homeowners to make energy-efficient upgrades, and would also help to drive demand for green technologies in the construction industry. Stamp duty is a tax which is usually overlooked, with Cornerstone Tax finding that 61% of homeowners said that they have never even considered whether there was a mistake in the stamp duty they paid, whilst 13% say they feel they were forced to pay too much stamp duty in error.
David Hannah, Group Chairman at Cornerstone Tax, comments:
“It seems that homeowners all over the country are seriously considering turning to green renovations not only to combat the rising energy costs but also to add significant value to their home. By making your home energy efficient, homeowners will also save money in the long run and contribute to the UK’s sustainability targets.
The initial costs of making green renovations to your home is still a substantial obstacle for homeowners to overcome. Perhaps in the future the government can provide much needed support to homeowners who are looking to refurbish their home to make it more eco-friendly. There’s evidently huge demand for greener homes as seen in the latest survey by the Royal Institution of Chartered Surveyors and the benefits of making your home more energy efficient can be substantial – the main upside being that your property will hold value despite falling prices elsewhere.
“If you want the benefits of an eco-friendly home, without the extra expense or the hassle then the solution would be to buy a new-build property. However, homeowners have developed connections to their current properties and understandably may want to stay there – therefore choosing to refurbish their current home rather than move to a new property.”
