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UK Finance has said that, if energy efficiency improvements are achieved within two years of property purchase, Stamp Duty rebates should become available. These plans were put forward in the association's most recent report, "Net Zero Homes: Time for a Reset", which discusses and recommends the implementation of multiple strategies in order to combat the challenge of climate change as well as provide a solution to the issue of rising energy bills, which only stand to worsen the current cost of living crisis.

The organisation believes that financial incentives such as grants and subsidies are essential in encouraging consumers to effectuate energy efficient methods to retrofit homes. David Postings, Chief Executive of UK Finance, has stated that "Our recommendation is that an energy efficiency adjusted Stamp Duty Land Tax (SDLT) could be utilised to increase demand for energy efficient properties and encourage homeowners to retrofit their homes although other options include using centrally-funded council tax incentives." Adding on, he affirmed that climate change is the paramount public policy priority for not only this generation, but also for those who will come in the future.

"[We] need to see strong action. In housing this means addressing the impact of heating the UK’s 28 million homes."

"The banking and finance sector is playing, and will continue to play, a key part in facilitating the transition to net zero. The transition must be done in a fair way that that does not leave anyone behind, which is why we believe that in order to make real progress everyone must work together, led by clear, decisive and supportive government action."

Futhermore, Postings says that mortgage lenders must enable an inclusive transition to ensure that all housing stock improves, rather than solely focusing on their balance sheets: "A transition that allows the person who has just purchased their ex-council property to play an active part in this change in the same way as someone who has more economic firepower. We are also working closely with regulators to address what lenders can do now and in future to tackle this challenge".

References:
The Negotiator

If you have any questions, Please speak to Sachinkumar Gupta of Property Hub Ltd.

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