Lenders and mortgage brokers have called on the Chancellor to introduce key reforms to stamp duty in the upcoming Budget, aimed at boosting energy efficiency in properties and stimulating the housing market.

The group, made up of Mortgage Advice Bureau, TSB, Leeds Building Society, and Coventry Building Society, has proposed a stamp duty refund for homebuyers who retrofit their property to achieve an energy performance certificate (EPC) rating of C or higher.

This incentive would make energy efficient upgrades more affordable, the firms said, as well as support the UK’s net-zero goals and provide momentum to the housing sector.

The letter, addressed to the Chancellor, said the measures would be “essential to promoting the widespread adoption” of energy efficiency improvements and low-carbon heating solutions thereby ensuring the housing stock is “fit for the future”.

Despite the previous Government setting a goal to ensure that most homes achieve an EPC rating of C or above by 2035, 60% of the UK’s housing stock remains below this standard – with 16 million properties in England and Wales requiring retrofitting to meet this EPC benchmark.

Deputy CEO at Mortgage Advice Bureau, Ben Thompson, said: “We’re writing to the Government as we want to collectively work together alongside the industry to accelerate the improvement of energy efficiency in the UK’s housing stock.

“This will not only benefit homeowners and renters by reducing their energy bills and carbon footprint, but also contribute to a more sustainable and resilient economy.

“A more energy efficient housing market can stimulate investment in green technologies, create jobs, and reduce our reliance on fossil fuels further. We urge the Chancellor to consider these stamp duty reforms to help achieve both economic and environmental goals.”

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