Mortgage Advice Bureau (MAB) has formed a coalition of mortgage lenders and brokers urging the government to reform stamp duty to stimulate the housing market through improved energy efficiency measures.
MAB, TSB, Leeds Building Society and Coventry Building Society are all part of a group who have written to the Chancellor ahead of the Budget “to express [its] concern about the pace of progress towards the decarbonisation of UK housing stock”.
Other signatories on the letter include Mortgage Brain, the Association of Mortgage Intermediaries (AMI), Paragon Bank, The Mortgage Lender (TML), Aldermore Bank, Fluent Money, The Brightstar Group and Home Funding.
Their proposals include introducing a stamp duty refund for homebuyer who upgrade their properties to reach an Energy Performance Certificate (EPC) rating of C or higher.
They believe this would make energy-efficient upgrades more available and offer support for UK’s net zero goals, whilst also boosting momentum in the housing sector.
The letter stated: “Any meaningful reduction in national emissions must include a robust strategy to decarbonise the buildings sector.
“Given the scale of this challenge, potential and existing homeowners will require far greater support and incentivisation than what is currently being offered through existing lender schemes.”
The letter added that while proposals to make rental homes more sustainable by 2030 were positive, it also states that they will need to be “substantial, potentially exceeding previous cost caps for landlords”.
“Careful consideration must be given to how these costs are managed, preventing undue financial burdens from being passed onto tenants via increased rents.”
Ben Thompson, deputy CEO of MAB, said: “We’re writing to the government as we want to collectively work together alongside the industry to accelerate the improvement of energy efficiency in the UK’s housing stock. This will not only benefit homeowners and renters by reducing their energy bills and carbon footprint, but also contribute to a more sustainable and resilient economy.
“A more energy-efficient housing market can stimulate investment in green technologies, create jobs, and reduce our reliance on fossil fuels further. We urge the Chancellor of the Exchequer to consider these stamp duty reforms to help achieve both economic and environmental goals.”