View more on these topics

Zero-carbon challenge for mortgage lenders

New environmentally friendly homes to get stamp duty exemption. by Guy Anker

Zero-carbon homes will be exempt from stamp duty and the Building Societies’ Association says lenders will need to introduce their own incentives to help the environment.

Chancellor Gordon Brown revealed in his pre-Budget report on Wednesday afternoon that by 2016 all new homes should be zero-carbon, and from 2007, the vast majority, but not all, of new zero-carbon homes will be exempt from stamp duty for an unspecified limited period. Full details of the plans will be published in next year’s Budget.

The BSA says the gauntlet has been thrown down to lenders to come up with their own solutions. Housing minister Yvette Cooper said in September that lenders should design “green mortgages”.

BSA head of external affairs Rachel Snow says: “The issue of property, energy efficiency and climate change are in the spotlight. Lenders will need to look very seriously to see if there is a market-led solution and consumers will also start to look at lenders for those.”

One of the options which has previously been proposed is discounts for environmentally friendly homes.

The mortgage industry has cautiously welcomed the Government proposals, saying they could encourage more first-time buyers into the market.

John Charcol senior technical director Ray Boulger says: “It will be good for first-time buyers purchasing new homes. It is encouraging but we do not know how feasible it is until we have the full details. It is disappointing that the structure of stamp duty has not been changed.”

Council of Mortgage Lenders head of policy Jackie Bennett says: “In theory, we welcome the stamp duty exemption but we will need to see the detail before we can assess the impact of this measure.”


A&L hits out at Chancellor on stamp duty

Alliance & Leicester has expressed disappointment with yesterday’s pre-Budget report.The mortgage lender had hoped the stamp duty threshold would be reformed to help first-time buyers onto the property ladder.A&L director of mortgages Stephen Leonard says: “Alliance & Leicester is disappointed there was no mention of stamp duty thresholds. Our research reveals that six in ten […]

The Money Portal acquires Swaines

The Money Portal has acquired 100 per cent of the Swaines compliance services consultancy.The move will offer Swaines financial security while adding compliance support to TMP’s stable. Chief executive Allen Swaines will continue to head up the business as it carries out its existing strategy. The Swaines brand is also expected to remain.TMP chief executive […]

US equities: opportunities for short sellers expand

Optimism is as American as baseball and apple pie. And since the financial crisis, being optimistic about US equities has paid off: they have outperformed every other major developed market by a comfortable margin. Yet while there remain plenty of good reasons to be optimistic about US equities, Stephen Moore, manager of the Artemis US […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm