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Green tax could push buy to let insurance customers toward new-builds
22 Jul 2010
Posted by Jonathan Walker
Government proposals to introduce a tax on poorly-insulated homes could encourage buy to let insurance policyholders to opt for new-build properties, according to newhomesforsale.co.uk.
Recent press reports have suggested that the government is considering plans put forward by the Green Investment Bank Commission to charge stamp duty tax on owners of homes with low energy-efficiency ratings.
Vernon Pethard, founder of the website, claimed that the proposals are "more stick than carrot" and may lead some buy to let property insurance customers to purchase newly-built houses.
"These measures may result in more people choosing new [homes] because in addition to being greener, new homes are more economical to own."
Mr Pethard added that the tax may act as a disincentive for people to buy existing houses because owners would be obliged to spend money on upgrading their energy efficiency.
"It's not always possible to bring them up to the exacting modern standards set by today's brand new homes," he said.
