Stamp duty should be linked to carbon emissions

stamp duty

Under the proposal by Policy Exchange, houses with a poor energy efficiency rating would see stamp duty rise 30 per cent from £1,900 to £2,470, reports CityAM.

However, those with aa home-buyer purchasing a house worth £220,000 (the median average house price in the UK) would see a £500 reduction in stamp duty costs.

It added that the reforms should be gradually phased in and that the adjustment in stamp duty would be no more or less than £2,500 regardless of the value of the property.

It estimates that as many as 270,000 households a year could be encouraged to undertake energy efficiency improvements based on the policy.

“Policies which link property values more closely to energy performance could kick start an energy efficiency revolution in this country,” Richard Howard, head of environment and energy at Policy Exchange and author of the report, said.

“By reducing the transaction costs and increasing the mortgage available for a more energy efficient home, the government could nudge people into making improvements to the efficiency of their home, which would not only add a premium to their property but would also reduce their energy bills.”