latest news from Building Research Housing Group

2/4/2007

Last months Budget - energy-related issues for housing

From EST’s Energy Efficiency Partnership for Homes, a useful summary of the energy-related aspects from last months budget. 

Stamp duty relief for Zero Carbon Homes

“From 1 October 2007 all new zero-carbon homes costing up to £500,000 will pay no stamp duty, with zero-carbon homes costing in excess of £500,000 receiving a reduction in their stamp duty bill of £15,000;”

The relief will apply to the fabric of the building and in the use of microgeneration ahead of 2016. The exemption will be time limited for 5 years until 30 September 2012. The government may consider extending the qualifying criteria to cover use of recycled materials and restricting carbon used in manufacture of materials and construction.

This builds on the commitment in the pre-budget report for all new homes to be built to a zero carbon standard by 2016. For coverage in the pre-budget report please see here.

Additional funds for the Low Carbon Building Programme

“An increase in funds available through the Low Carbon Buildings Programme to a total of over £18 million to help meet the demand from households for microgeneration technologies”

For information on the Low Carbon Buildings Programme please click here.

Energy efficient windows

“The Government will carefully monitor the progress of [the British Fenestration Rating Council’s Window Energy] rating system and developments in the [glazing] market, and will work with the industry and manufacturers to explore the case and scope for incentives to encourage the installation of energy efficient glazing.”

Members of the Partnership Glazing Strategy Group have sought to encourage the government to reduce VAT on highly efficient glazing. Though the budget does not announce a reduced rate of VAT on highly efficient windows, the budget includes a commitment to support the development of energy efficient glazing technology.

For information about the Partnership’s Glazing Strategy Group please see here.

Intention to help all householders to introduce energy efficient measures

“An intention that, by the end of the next decade, all householders will have been offered help to introduce energy efficient measures with the aim that, where practicably possible, all homes will have achieved their cost-effective energy efficiency potential;”

Legislation for the extension of Landlords Saving Allowance (LESA)

“Government will legislate in the 2007 Finance Bill for the extension of the existing Landlords Energy Saving Allowance (LESA) sunset clause from 2009 to 2015”

The budget statement explains how the government will fulfil commitments made in the Pre- Budget Report for the extension of the Landlords Energy Saving Allowance (LESA). These include the application of the allowance to per property rather than per building, ensuring smaller properties have access to the full allowance, and the addition of the acquisition and installation of floor insulation as a qualifying investment. The Government is also seeking State aid approval to extend the availability of LESA to all corporate landlords.

For coverage in the pre-budget report please see here

Measures to improve the efficiency of a range of electronic and energy-using products

“The UK Government aims to become by 2011 the first European country to phase out the use of inefficient general lamp standard (GLS) light bulbs, where an efficient alternative exists”

The EU’s Energy-using Products (EuP) Framework Directive will bring forward measures to improve the efficiency of a range of electronic and energy-using products within the EU. Under the EuP Directive, member states have agreed to establish, by 2009, new European legislation to increase the efficiency of light bulbs working with UK manufacturers, retailers and trade association. To encourage the purchase of low energy light bulbs, the Government has this month written to European Finance Ministers and the European Commission to recommend the introduction of a reduced VAT rate for energy efficient products.

Voluntary schemes for energy efficient electrical products

“As announced at Budget 2006, the Government is also working in partnership with major retailers and the Energy Saving Trust in advance of EU regulation, to introduce voluntary schemes in the retail sector to encourage the purchase of more energy efficient alternatives in consumer electronics, and therefore raise the energy efficiency of electrical products.”