Home buyers to pay the price for energy guzzling properties

Estate Agent Today - 23rd July 2010 

Home buyers could be forced to pay a higher rate of Stamp Duty if they buy a home with a poor EPC.

The proposal would be introduced alongside the Government’s £90bn Green Deal scheme in 2012, by which householders will be offered ‘free’ green make overs by energy companies, local councils or DIY chains.

The UK has to meet legally binding targets to cut greenhouse gas emissions by 34% of their 1990 levels within ten years.

The Stamp Duty proposal comes from the Green Investment Bank Commission, an advisory body set up by the Labour government last year.

The report says: “Ultimately, either implementing penalty rates of Stamp Duty for houses purchased where the buyer does not implement available energy efficiency measures, or setting minimum standards on properties, will be required.”

One idea being considered by the Department of Energy and Climate Change is that people who buy a property with low levels of insulation and a dated boiler would have to pay an extra 0.5% levy on top of the normal Stamp Duty.

If they improve the energy efficiency within a year, they would get the money back as a tax rebate.