FMB Claims That Green Homes Need Tax Incentive

According to an industry group, the government’s Warm Homes, Greener Homes Strategy would do better if a simple tax incentive were introduced for residential property owners who are looking to make green improvements to their home.

The Federation of Master Builders (FMB) responded to the government plans to retrofit seven million homes around the country within the next ten years. They stated that cutting down on the VAT cost of these projects – down to five percent – would attract more homes who are worried about the cost.

The scheme is designed for homeowners to “pay-as-you-save” and debts will be attached to properties rather than individuals, paid off when energy savings are made.

The FMB also added that making a change such as this could create around 55,000 jobs, which includes almost 25,000 for those involved in building, plumbing and other trades.

The new government strategy is designed around low cost loans in the hopes that more homeowners will be less put off by the upfront costs of making eco friendly changes to their homes, such as the addition of double glazing in windows. Such work can reduce heat lost through homes and can make them a lot cheaper to run, cutting costs on energy bills.

The scheme is also going to introduce tighter standards when it comes to eco friendly projects and workmanship.

Director of the FMB external affairs, Brain Berry, said that “The FMB recognises the need for high standards in the retrofit market and will be working with the government to address how best these can be achieved.”