Higher Council Tax for non-Green Homes

The UK government is considering charging households extra council tax and stamp duty if they refuse to make their properties greener.

Households who don’t want to install double glazing or insulation may be penalised according to the latest proposals drawn up by ministers. To encourage households to install the greener measures, a carrot and stick approach will be used by introducing ‘green mortgages’ where homeowners can apply for loans to spend on green equipment such as solar panels or new, more efficient boilers.

As yet there has been no official statement regarding the proposals and none is expected before the autumn.

It is expected that the Government will offer loans for environmentally friendly products such as double glazing, cavity wall insulation, loft insulation, solar panels and wind turbines amongst others. It is proposed that the loans will be made available by high street banks in partnership with councils. The loans are expected to be between £10,000 and £15,000 and repayable over 25 years. Householders who refuse to take part in the scheme are likely to be hit with higher council tax rates and there may also be the added threat of higher stamp duty payments which may put off prospective property purchasers. Any charges on the house would be passed to the new owner if the property was sold.

There has been some backlash over the proposals with some believing that features such as Victorian sash windows could be removed in favour of double glazing – when sash windows are actually quite energy efficient.

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