Tax proposals ''could provide boost for sustainable construction''

Posted by Robert Shields

Government plans to introduce a tax on poorly-insulated homes with low energy efficiency ratings may encourage more people to purchase new-build properties that use sustainable construction techniques and green building products, an expert has said.

Recent press reports claimed that the government was considering a scheme, suggested by the Green Investment Bank Commission, to charge a stamp duty tax on owners of homes with a low energy efficiency score.

Vernon Pethard, founder of newhomesforsale.co.uk, called the proposals ''more stick than carrot'', suggesting that they could lead home buyers to opt for new properties with sustainable construction products, such as eco-friendly insulation and photovoltaic (PV) solar panels.

''These measures may result in more people choosing new [houses] because in addition to being greener, new homes are more economical to own.''

He added that the tax could act as a disincentive for people to buy existing properties because owners would be obliged to spend money on increasing the energy efficiency.