As climate change and sustainability continue to dominate the political agenda, property buyers and homeowners are being encouraged to go green — not just for the planet, but for their wallets too. In recent years, the UK government has been exploring ways to incentivise eco-friendly housing through grants, mortgage perks, and even potential Stamp Duty Land Tax (SDLT) reliefs for energy-efficient properties.
So, if you’re thinking about buying or upgrading a home, it’s time to ask: Is your property green enough? And can going green actually help you save on Stamp Duty?
In this guide, we explore the current landscape and what energy efficiency means for your property tax bill.
♻️ Why Energy Efficiency Matters in Property Transactions
The Energy Performance Certificate (EPC) is now a standard part of any property sale in the UK. It grades a property’s energy efficiency from A (most efficient) to G (least efficient), and can affect a home’s value, running costs, and attractiveness to buyers.
With more lenders and policymakers promoting sustainable homes, properties with higher EPC ratings may:
Command higher prices
Sell faster
Qualify for financial incentives or tax reliefs
🏡 What Stamp Duty Incentives Exist for Green Homes?
Currently, there are no formal national Stamp Duty reliefs directly tied to EPC ratings or green upgrades — but there’s growing momentum for change. In fact, several government consultations and think tanks have proposed linking SDLT rates to a property’s environmental performance.
Proposed ideas include:
Reduced SDLT rates for homes rated EPC A or B
Refunds on Stamp Duty if buyers commit to improving a property’s rating post-sale
SDLT surcharges on inefficient properties to drive retrofitting
While none of these policies have yet become law, they could be introduced in future Budgets, especially as the UK works toward net-zero carbon emissions by 2050.
🔋 Other Green Incentives Buyers Can Use
While we await formal SDLT reform, buyers can still access eco-friendly financial perks when purchasing or upgrading a home:
1. Green Mortgages
Many lenders now offer preferential rates on mortgages for homes with EPC ratings of A or B.
✅ Lower interest rates
✅ Cashback deals
✅ Lower product fees
2. Home Upgrade Grants
Buyers purchasing older, less efficient homes may be eligible for government schemes such as:
The Home Upgrade Grant (HUG) for off-grid homes
Local authority energy-efficiency schemes
These grants can fund insulation, heat pumps, double glazing, and more — reducing running costs and potentially boosting resale value.
3. VAT Cuts on Eco Upgrades
The government offers 0% VAT on certain energy-saving measures, such as solar panels and insulation, until 2027.
🧮 How to Plan Your Green Purchase (or Renovation)
If you’re buying a home and want to future-proof your purchase:
Use the EPC rating as a deciding factor.
Ask the seller for recent energy bills or any installed green tech (e.g., solar, heat pumps).
Factor in future upgrade costs — and potential future SDLT reliefs — when setting your budget.
If you already own a home and plan to sell:
Consider upgrading your home to EPC band C or above before listing it.
A higher EPC rating could make your home more attractive to eco-conscious buyers and may qualify for future tax incentives.
🌱 Why It Pays to Think Green — Now and Later
While you can’t currently knock money off your Stamp Duty bill for buying a green home, the financial and practical benefits are very real — and the policies are clearly moving in that direction. In a few years, energy-efficient homes could carry built-in tax advantages, and inefficient ones may face penalties.
By choosing or upgrading to a greener property now, you’re likely to benefit not only from lower energy bills, but also from favourable treatment in future tax policy.
