Homeowners will need a tax incentive for taking out green loans, claims one industry body.
The Federation of Master Builders (FMB) commented on the government's launch of the 'Pay As You Save Scheme' which could see homeowners taking on a £10,000 'green loan' to make energy-efficient improvements to their homes.
The organisation said that reducing value added tax on home improvements by five per cent would encourage householders to invest in green technologies such as micro-generation.
In addition, the cut in tax could generate an additional 55,000 jobs, claimed the FMB.
Brian Berry, director of exernal affairs at FMB, said: "Many householders under the government's proposed 'Pay As You Save' [cap up for consistency] will be worried about attaching a new debt to their property and the impact this could have on the resale value of their home.
"We know that the cost of cutting VAT to five per cent for repair and maintenance work would cost the Treasury between £102 million and £508 million but the total stimulus to the British economy as whole would be in the region of £1.4 billion."
Mr Berry also called for more information on energy performance certificates at the point of sale, to make it easier for prospective buyers to make informed choices.
See Also: Property News (6711)
Date Published: 02 March 2010
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