A group of British companies, including Lloyds Banking Group, Kingfisher (owner of B&Q), Santander, and E.ON UK, are urging Jeremy Hunt, the Chancellor of the Exchequer, to support the energy transition by reevaluating the stamp duty regime for housebuyers. These companies have joined forces as part of the Better Homes Alliance (BHA), which advocates for incentives that promote energy efficiency.
In a letter to the Chancellor, the BHA expressed its objective of empowering households across the UK to improve the energy efficiency of their homes. It proposed the implementation of a ‘Rebate to Renovate’, which would provide a stamp duty rebate for homes that enhance their Energy Performance Certificate (EPC) rating through renovations within two years of a sale. The BHA believes that this carrot approach would encourage homeowners to make the necessary improvements to address the inefficiency and carbon intensity of UK homes.
According to research cited by the BHA, homeowners could save over £10 billion by upgrading their properties to be more energy-efficient. This represents an annual saving of £390 for the average household. Additionally, improving a home’s energy efficiency could potentially increase its value. Research by Rightmove suggests that improving an EPC rating from F to C could increase a home’s value by up to £56,000 above local price growth.
The BHA also emphasized the need for incentivizing homeowners to make improvements in order to address rising costs, energy security concerns, and the UK’s commitment to achieving net zero emissions. The group has suggested that their ‘Rebate to Renovate’ proposal would be more effective than previous energy efficiency measures. Talks have already taken place between officials from the Department for Energy Security and Net Zero and the Treasury regarding this policy.
The Better Homes Alliance, whose secretariat function is provided by WPI Strategy, also includes Santander UK, Knauf (an insulation provider), and the Energy Efficiency Infrastructure Group as inaugural members.
– Sky News
– Government figures