Home purchasing

Buyers are subject to a higher stamp duty for the purchase of non-green homes

Buyers of properties with the worst energy efficiency ratings, such as older and larger homes, would incur a surcharge of almost three percentage points – the same amount that is added for the purchase of additional homes.

A large detached house built in the 1900s with an EPC rating of D that sold for £ 2million would cost its buyer an additional 2.7 percentage points in stamp duty. This would add £ 53,903 to the tax bill, bringing it to a total of £ 207,653.

Mr Adams said the measures would make buyers aware of the drawbacks of lower quality properties by creating a clear price differential. “Right now people just don’t understand the implications of what they’re buying, they can take on a big responsibility,” he said.

He added that another benefit was that the proposals would encourage existing homeowners as well as buyers to improve the energy efficiency of their homes to avoid seeing their property’s value drop when it comes to sell.

As part of its goal for all homes to have an EPC rating of C by 2035, the government is considering giving lenders a deadline of 2030 to have an average C rating across their portfolios. This would make it more difficult and more expensive for a potential buyer to obtain a mortgage for a home with a low energy efficiency rating.

The stamp duty proposals would use the energy performance certificate rating system, but Adams called for this system to be reformed to reflect energy efficiency rather than fuel costs.

A government spokesperson said: “We believe that everyone deserves to live in decent and safe housing, and our reforms will provide a fairer system for all, helping homeowners and homeowners improve the energy performance of their homes. home, reduce their energy bills and increase consumer choice.

“Huge strides are already being made in the energy efficiency of UK homes, and we are investing nearly £ 6.6bn to help people install energy efficiency measures across the UK.”