- Chancellor Jeremy Hunt has been urged to introduce the stamp duty rebate
- MPs and think tanks say it should be given to those who insulate 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 incentivise green improvements, MPs and think tanks are urging ministers to back a ‘Rebate to Renovate’ tax refund scheme.
A new report by the Better Homes Alliance, published today, found that many households are unlikely to cover the upfront costs of retrofitting – ranging between £8,000-£12,000.
Yet research by the group found improving the energy efficiency of a home – from loft insulation to double glazing – could knock £348 a year off the average household’s energy bill.
The alliance said the Government should take a lead in showing how fiscal incentives could help homeowners improve their homes and reduce carbon emissions – with MPs and officials considering the policy.
Polling suggests there is broad support for the idea, with six in ten people with a mortgage saying they would be likely to upgrade their properties if rewarded with a stamp duty rebate.
The number rises to nearly seven in ten if those improvements led to reductions 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 should look for solutions that incentivise rather than penalise individuals to upgrade the energy efficiency of their homes.’
Adam Hawksbee, deputy director at Onward, said: ‘Homeowners want to make improvements to their properties but many people are unable to due to the significant costs involved.
‘This is particularly true for people living in low value homes in poorer parts of the country.
‘We need to find ways to incentivise, not penalise, people to retrofit their homes. That is why the government should consider the idea of a Rebate to Renovate, a practical solution which will help bring down energy bills and decarbonise our inefficient housing stock.’
Ryan Shorthouse, the executive chair of Bright Blue, added: ‘We need stronger policies to ensure households retrofit their homes with the necessary energy efficiency measures and low-carbon technologies.
‘It makes sense to have a strong incentive at the point of moving into a house, as this is the time that homeowners are most likely to be open to making major improvements.’
The proposal has previously been backed by Lloyds bank and the owner of B&Q.
