The government is considering a new tax that could add over 850 pounds to buying a new home.
In addition, it could require a new owner to spend a minimum of 15,000 on improvements.
A 0.5 per cent stamp duty is being considered by the coalition but commissioned by the last Labour government. This is in addition to the normal stamp duty. By sharply improving the rating within a year, its possible to reclaim twice the amount of the Green Tax from a Green Investment Bank.
The property industry considers this tax unworkable and will throw the housing market into turmoil.
There is already an energy rating system in place. Upon inspection of the home, an energy rating is determined. Ratings are from “A” to “G” and each provides tips on how to improve the home’s rating. The green tax would apply to homes with F and G ratings.
Although it would help make beneficial, environmentally friendly additions to homes, many experts feel any extra expense heaped on buyers would damage the market.
Also, Nicholas Leeming of sales website Zoopla.co.uk says, “Some 65 per cent of UK homes were built before 1965, and in London 27 per cent before the first World War. This would clearly be unworkable.”
The firm PRP recently retrofitted a 1940′s three bedroom house. The process took too long and was too costly.
This being discovered, the two government departments considering this move say, this is one of many ideas being considered.