Stamp duty may rise for energy loss
The Government is considering raising stamp duty on energy inefficient homes with old heating boilers, draughty windows or insufficient loft insulation.
Under the plan, anyone buying a house with a poor Energy Efficiency Report rating would have to pay an extra 0.5 per cent on top of their stamp duty bill.
But if they upgraded the property within a short time of moving in, they would be refunded double the original penalty.
The initiative could be introduced in two years’ time as part of the Government’s “Green Deal”.
A more radical proposal effectively banning owners of properties with the lowest energy efficiency ratings from putting them on the market until they have upgraded them is thought to have been rejected by ministers as it could “trap” the least well off in homes they are unable to sell.
Steve Lees, director at SmartNewHomes.com, says: “Energy-efficiency is fast become a pre-requisite for UK homeowners and buyers and these proposals by the Government to penalise those buying poorly insulated homes will greatly highlight the benefits of buying a new build property and avoid stamp duty penalty charges. Those re-selling new homes will also have an advantage and could command higher asking prices.”