FMB Welcomes MP’s Call For Greener Homes and Energy Incentives
The Federation of Master Builders (FMB) has welcomed a House of Commons Environmental Audit Committee report calling on the Government to provide greater incentives for homeowners and housebuilders to create greener, more energy-efficient homes.
The report into environmental sustainability and housing growth includes several recommendations that align with long-standing calls from the construction sector for policy reform to accelerate the retrofit of the UK’s ageing housing stock.
Brian Berry, Chief Executive of the FMB, who gave oral evidence to the Committee’s inquiry, said:
“Our country has one of the oldest housing stocks in Europe and moves to retrofit our existing 29 million existing homes have to date been very slow. Government measures are largely focused on social homes with too few incentives for owner occupiers. The Committee’s report calling on the Government to review current tax policies such as Council Tax and Stamp Duty echo what many have been saying for many years in the construction sector.”
The Committee has called for the rate of VAT on retrofit projects to be reduced from 20%, a move the FMB believes would significantly boost energy efficiency improvements while supporting local building companies.
Mr Berry continued:
“The Committee’s call to prioritise retrofitting over demolition by reducing the rate of VAT on retrofit projects from 20% would certainly help create more energy efficient homes whilst at the same time support local building companies who would be best placed to carry out this work. The report’s recommendation that the Government should confirm that a retrofitted property brought back into use would count towards housebuilding targets would be a significant step to help deliver the Government’s stated aim to build 1.5 million new homes over the next four years.”
The Committee’s recommendations offer practical pathways to help the Government meet its ambitious housing targets while improving the energy performance of existing homes.
Mr Berry concluded:
“At a time when many are questioning how the Government can fulfil its election promises the Committee’s report offers some valuable policy recommendations to help them get back on the road to recovery.”
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