Source · Select Committees · Environmental Audit Committee
Recommendation 30
30
Paragraph: 133
We support and reiterate the Green Finance Taskforce recommendation that the Government should pilot a...
Recommendation
We support and reiterate the Green Finance Taskforce recommendation that the Government should pilot a stamp duty rebate for homeowners that improve the efficiency of their homes within the first year of purchase. We recommend that the Government work with the financial sector and major landlords, including local authorities and other social landlords, to stimulate renovation through the introduction of green mortgages, green finance and low cost loans. These instruments would help to address the barriers to energy efficient renovation and retrofit in the form of high upfront costs of energy efficiency measures. The Government should consider how the national infrastructure bank could be used as a vehicle to finance energy efficiency given the scale of success achieved in Germany through its state funded low interest loan scheme.
Paragraph Reference:
133
Government Response
Acknowledged
HM Government
Acknowledged
of homes as we move through the 2020s, and we agree that action is needed to support lenders and the wider finance market to innovate and expand the range of green finance offering available to homeowners. In addition to our consultation on Improving Home Energy Performance Through Lenders, referenced above in response to paragraph 129, we are supporting the development of innovative green home finance products through our Green Home Finance Innovation Fund. Through this fund we have awarded £1.8m to three projects due to complete by March 2022. As mentioned above, we are also currently engaging with lenders and wider industry stakeholders to consider the best ways of providing additional support for the 20 Energy efficiency of existing homes: Government Response development of the green finance market over the coming years, both for green mortgages, and for green lending more broadly as well as exploring options for the recently announced UK Infrastructure Bank to support retail lenders to deliver green finance to homeowners. While trials of Stamp Duty rebates for energy efficient homes are not under active consideration at this time for the reasons set out above, Government recognises more needs to be done to improve the energy performance of owner-occupied homes and we remain committed, as set out in the Energy White Paper, to consulting on regulatory measures to improve the energy performance of owner-occupied homes. We will be consulting on a broad range of regulatory options this year.