Estate agents warn owners of older homes, rural houses and listed properties could struggle to sell under green mortgage plans
Homeowners living in older, rural and even listed properties risk being unable to sell if strict green finance targets are introduced, estate agents have warned.
The warning comes after 보리스 존슨 unveiled his plan for turning Britain green by 2050 이번 주, with mortgage lenders having targets for the energy performance of properties in their portfolio.
A body that represents estate agents across Britain claimed that the property market could be distorted as a result of the measures and called for Britain’s historic housing stock to be taken into account.
Boris Johnson revealed proposals on how to make the housing stock greener this week
Timothy Douglas, of Propertymark, 말했다: ‘Incentivising green improvements to properties via lending creates risks of trapping homeowners with older properties, those who live in rural areas, listed buildings or conservation areas, making their homes difficult to sell and therefore reducing the value.’
Propertymark said that those living in older properties could be left with homes that they could not sell if buyers were unable to secure finance on them due to their lower energy efficiencies.
The effect would be likely to be felt more by less wealthy owners, as deep-pocketed buyers would be more able to overlook mortgage restrictions and high-end older homes would continue to be desirable.
Mr Douglas said: ‘The use of targets could distort the market and sway lenders towards preferential, newer homes in order to improve the rating of their portfolio.
‘Stopping a large portion of housing stock from being able to enter the market could cause havoc for home buying and selling as well as the wider economy.’
He added that improving the energy efficiency of homes should be reliant on consumer choice and not something enforced by mortgage lenders, with all the knock-on effects this could entail.
그는 말했다: ‘We would be concerned if lenders raise rates and limit products because fundamentally, improving the energy performance of a property is reliant on consumer choice and it is not the core business of mortgage lenders.’
Mark Harris, of mortgage broker SPF Private Clients, 말했다: ‘The green agenda is not new but there is increasing impetus behind it. There are more green mortgage products aimed at those purchasing more energy-efficient properties – A-C rated, and not just from specialist lenders but the high street banks too.
'하나, there is a real danger that green initiatives could create the next round of mortgage prisoners if homeowners are trapped in older homes that can’t be improved, so they can’t move because they can’t sell them on.
‘Without changes or improvements, lenders may restrict lending to lower loan-to-values, higher pricing, or not lend at all. This could penalise those who are unable to adapt to or adopt new efficient technologies economically.’
A UK Finance spokesperson said: ‘Greening our housing stock is vital if we are to meet our climate change obligations and banks and finance providers are committed to helping achieve this goal and making sure consumers are not left behind.’
Ways to boost energy efficiency
Propertymark recommends three measures to improve the energy efficiency of homes without negatively impacting the housing market.
1. Improvements linked to an EPC
These include linking a plan for energy efficiency improvements to the recommendations on a property’s Energy Performance Certificate.
It could demonstrate the ‘most suitable route’ to a warmer home, regulatory compliance and zero carbon, according to Propertymark.
2. Tax breaks
It also recommends using tax breaks to incentivise homeowners to finance energy efficiency improvements.
예를 들면, these could include making energy improvements exempt from VAT or offering lower rates of council tax for homes that have been made more energy efficient.
3. Adjustable tax rates
An adjustable rate of property tax that is tied to energy performance is also being recommended by Propertymark.
This could be done in two ways, it suggested. 먼저, by applying the adjustment as a reduction on more energy-efficient properties. And second by offering rebates to buyers if energy efficiency improvements are made to less efficient properties within a certain time period after purchase.
Propertymark said that by linking energy performance with property taxes, this could help introduce increased saleability for more energy-efficient properties. 게다가, it suggested that improvements would become standard for homeowners seeking costs and improve the desirability of their homes.