In a report from the Environmental Audit Committee (EAC) on ‘Accelerating the transition from fossil fuels and securing energy supplies’, it was noted that the government was yet to respond to a consultation conducted by the Department for Business, Energy and Industrial Strategy that closed in 2021. The consultation discussed the obligation of lenders to improve the energy efficiency of residential properties through mortgages.
The EAC said: “More than 18 months afterwards, the government has yet to come forward with concrete proposals to kick-start a retrofit revolution in this part of the housing market. We are disappointed at this delay and recommend that the department now fast track its response to that consultation and publish detailed policy proposals on green mortgages not later than the end of February 2023.
“If the government has not published these proposals by the time the response to this report is due, we recommend that Ministers set out a timetable for doing so by the end of March 2023.”
Stamp duty’s effect on green homes
The committee also asked the government to look at how variations to the rate of stamp duty could incentivise people to make their homes greener without affecting tax revenues. This was a follow-up on a proposal made in the EAC’s report on Energy Efficiency of Existing Homes, which was published in March 2021.
At the time, the government said using stamp duty rates to create low-cost green finance products could risk the Exchequer’s revenue. The EAC has asked the government to look at how this can be done “progressively”.
A ‘war effort’
The EAC said: “We recommend that the government launch a national ‘war effort’ push on energy saving and efficiency.
“The government must treat the upgrading of all homes in England at band D or below to band C as a national priority to ensure affordability, enhance the UK’s energy security and reduce the high emissions from the country’s leaky and draughty building stock.”
