Modernising ‘Stamp Duty Land Tax’ to become an ‘Energy Saving’ Stamp Duty would stimulate the housing market to ‘value’ energy performance in the same way it does kitchens, bathrooms and the state of repair of a home. A ‘rebate to renovate’ reward would incentivise homeowners to improve the energy performance of their homes within 2 years of purchase, driving a long-term mass-scale sustainable market for measures such as insulation, heat pumps and solar panels.

Key ideas in the briefing:

  • Stamp duty would be nudged lower for better energy performing homes and higher for poorer performing homes, encouraging negotiation over selling prices
  • Energy performance improvements within 2 years of purchase would trigger a rebate
  • The incentive would be revenue neutral to the Treasury
  • In addition, low-income households can be supported with an enhanced rebate worth around £1.8 billion per year, funded by Government
  • It could drive over £8 billion of investment a year and stimulate jobs and skills nationwide
  • It could reduce homeowner energy consumption by 8.5% by 2030

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Energy Saving Stamp Duty Incentive

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