Given that Gordon Brown outlined proposals to raise the stamp duty threshold on zero-carbon homes, perhaps it's time that property investors woke up to the possibility that going green will help to sa
March 26, 2007 (Press Release) --
Given that Gordon Brown outlined proposals to raise the stamp duty threshold on zero-carbon homes, perhaps it's time that property investors woke up to the possibility that going green will help to save both the planet and a packet?
The chancellor announced that stamp duty would no longer be applicable on buildings up to the value of £500,000 in his Budget speech earlier this week, which also included a number of other green incentives. Although the move was widely expected throughout the industry, property investors may not be switched on to the real cash savings which can be generated by eco-friendly homes.
According to the Energy Saving Trust, modifications such as double glazing and cavity wall insulation can help to cut the cost of heating bills drastically, as can draught proofing and pipe insulation. While this may not have most property investors rubbing their hands with glee, the body also claims that research shows buyers to be willing to pay as much as £10,000 extra for a greener home. This should raise a few eyebrows among investors thinking of cashing in on their buy-to-let properties.
Additionally, it seems that mortgage costs - the buy-to-let investors' biggest overhead - could also be reduced by a bit more care and attention to environmental issues.
Co-operative Bank, which has long professed its green credentials by installing renewable energy on its office blocks, claims that before too long mortgages which do not encompass environmental concerns will be the exception, rather than the rule.
David Anderson, chief executive of the bank, said: "We are convinced that green mortgages will be the most common form of home loan in the future."
It seems that Mr Anderson is not alone in his beliefs, as mortgage provider Norwich & Peterborough has also moved to offer its own guidance on the issue of eco-friendly mortgages.
Alison Rolls, head of communications at the company, said: "This is not a competition - all lenders should provide green mortgages.
"As lenders we have an obligation to make homebuyers aware that there is a great deal they can do to reduce emissions by saving energy at home."
Yorkshire Building Society has unveiled plans to offer cheaper mortgage repayments for owners with less carbon-costly homes, with the government encouraging all lenders to make allowances for buyers willing to go green. Full details of these proposals are to be outlined in the Energy White Paper due out in the near future.
So what's next for buy-to-let investors hoping to maximise their profits from the emerging eco-trend? Well, as the government has recently proposed to "aggressively tax" budget airlines as the fuel usage is contributing to climate change, is it so preposterous to imagine higher taxes in the future for investors who fail to reduce their carbon footprint? Who knows, but maybe now's the time to start finding out...
The chancellor announced that stamp duty would no longer be applicable on buildings up to the value of £500,000 in his Budget speech earlier this week, which also included a number of other green incentives. Although the move was widely expected throughout the industry, property investors may not be switched on to the real cash savings which can be generated by eco-friendly homes.
According to the Energy Saving Trust, modifications such as double glazing and cavity wall insulation can help to cut the cost of heating bills drastically, as can draught proofing and pipe insulation. While this may not have most property investors rubbing their hands with glee, the body also claims that research shows buyers to be willing to pay as much as £10,000 extra for a greener home. This should raise a few eyebrows among investors thinking of cashing in on their buy-to-let properties.
Additionally, it seems that mortgage costs - the buy-to-let investors' biggest overhead - could also be reduced by a bit more care and attention to environmental issues.
Co-operative Bank, which has long professed its green credentials by installing renewable energy on its office blocks, claims that before too long mortgages which do not encompass environmental concerns will be the exception, rather than the rule.
David Anderson, chief executive of the bank, said: "We are convinced that green mortgages will be the most common form of home loan in the future."
It seems that Mr Anderson is not alone in his beliefs, as mortgage provider Norwich & Peterborough has also moved to offer its own guidance on the issue of eco-friendly mortgages.
Alison Rolls, head of communications at the company, said: "This is not a competition - all lenders should provide green mortgages.
"As lenders we have an obligation to make homebuyers aware that there is a great deal they can do to reduce emissions by saving energy at home."
Yorkshire Building Society has unveiled plans to offer cheaper mortgage repayments for owners with less carbon-costly homes, with the government encouraging all lenders to make allowances for buyers willing to go green. Full details of these proposals are to be outlined in the Energy White Paper due out in the near future.
So what's next for buy-to-let investors hoping to maximise their profits from the emerging eco-trend? Well, as the government has recently proposed to "aggressively tax" budget airlines as the fuel usage is contributing to climate change, is it so preposterous to imagine higher taxes in the future for investors who fail to reduce their carbon footprint? Who knows, but maybe now's the time to start finding out...
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