Stamp duty incentives for energy efficient properties would ensure that the UK is building enough green homes, a new report has claimed.
The study from Make UK Modular ‒ a trade body for modular home builders ‒ and Octopus Energy found that around half of people would pay more upfront for a greener home, while nearly eight in 10 homebuyers would pay more initially for a property with lower energy bills.
Desire for a greener home was particularly pronounced among those aged 18-30, with two-thirds saying they were willing to pay a premium
The trade body argued that these findings demonstrated a clear demand for energy efficient properties across the country, but that a radical approach was needed from the government to ensure that supply can keep up with that demand.
It argued that tying stamp duty into energy performance, so that more efficient homes enjoy a smaller tax burden, would push more homebuilders into developing such properties as well as ensure that demand remains strong.
In order to meet this demand, the report suggested reforming the planning process so that greener properties are fast tracked, as well as revamping the affordable homes programme so that 20 per cent of new affordable properties are modular.
‘On the cusp of a green revolution’
Daniel Paterson, director of government affairs at Make UK Modular, said the country was “on the cusp of a green housing revolution”, with wide public demand for homes that are environmentally friendly.
He continued: “We now need to see action on the part of government to allow for these greener homes that not only help reduce the carbon cost of construction but help the household pocket too.
“Government can help today at zero cost to the Treasury by introducing demand side reforms of stamp duty rates, reforming the Affordable Homes Programme allocation for modular builders, and using unspent pledged funding to help improve supply chains.”
