Buying a Home Just Got More Costly Thanks to Green Tax

It now seems that some property industry slate plans are being cut by the Coalition government right now to increase stamp duty for homes with poor energy ratings. This new green tax being considered by the government could add as much as £850 to the cost of buying a typical home. It would also require new home owners to spend some £15,000 on improvements before they would trigger a rebate.

This plan is currently being considered by the coalition government but was commissioned by the last Labour government. It would make buyers pay an additional 0.5 Percent stamp duty if the home they purchase had a poor energy rating. If the homeowner is able to sharply improve the rating within a year, they could reclaim up to twice the mount of the green tax from a so called Green Investment Bank.

Of course, the property industry is not happy with this idea. In fact, they have branded the whole plan as unworkable and a stealth tax. It says that the new tax could risk throwing the housing market into turmoil.

Right now there is already a mandatory energy assessment undertaken by inspectors on all homes before they go on sale. The ratings range from A down to G, and each gives tips on how the home rating can be improved.

This green tax would only apply to homes that are sold with a rating of F and G. This would give buyers an incentive to bring their homes up to E or better. It would be a big part of helping the government’s program to cut greenhouse emissions by 34 percent from their 1990 levels by 2020.