Will homeowner 'green tax' increase prompt equity release spending?

Equity release schemes could help new homeowners make their houses more energy efficient in order to avoid a 'green tax' launched by the government.

Tory and Liberal Democrats cabinet ministers are considering the plausibility of introducing a form of taxation to push homeowners to properly insulate their homes and make them greener.

Under the proposals, people opting to purchase houses in the lowest band of energy efficient properties will be required to pay an additional 0.5 per cent on top of their stamp duty.

However, if after moving in they carry out the necessary repair and renovation in a reasonable period of time, they could claim back this money.

The measures aimed at reducing Britain's greenhouse gas emission will no doubt add extra burden to workers who are already overly financially stretched.

A recent report compiled by Unum found that one in five employees do not have any back-up financial support in case they lost their jobs and could turn towards equity release as an alternative.

Ashall Glover Financial Services are equity release specialists

Posted by Partick Ashall