Heating and Ventilating

The public like the idea of the new Green Deal but will take it up only if government is prepared to offer significant financial incentives such as stamp duty rebates, council tax refunds, and low interest rates, according to new research by the Great British Refurb Campaign and WWF-UK.
As Chris Huhne prepares to take the platform at the Liberal Democrat party conference to set out his plans for the greenest government ever, the Great British Refurb Campaign is calling for a stronger Green Deal that will motivate the nation's homeowners to upgrade their homes energy efficiency.

The Great British Refurb campaign surveyed more than 2000 adults, in order to gauge the level of interest from the public for a proposed Green Deal programme that would improve the energy efficiency of their home.

Rather than paying the cost of energy efficient refurbishment upfront, the work is paid for by a charge on the home over a period of up to 25 years.

This charge is known as a Pay-As-You-Save (PAYS) charge and will cost less than the money saved from reduced energy use. This charge would be linked to the property, rather than the individual so when they sell their home the charge would pass to the next owner.
Based on this, 56% of those polled would find the Green Deal an attractive proposition.

However the Great British Refurb Campaign believes this number could increase with financial incentives, and believes this is crucial to help ensure the UK meets its carbon targets.

A one-off council tax rebate is a real motivator with 49% saying they would be likely to take up the Green Deal if government can offer a £500 council tax rebate.

Changes to stamp duty were also popular with the public considering or recently moved and are an important incentive for refurbishment works.

The Great British Refurb is now calling on Huhne to offer these positive financial incentives to ensure there is greater take-up of the Green Deal.

Low interest rates (which are not included in the current government package) are also key to a greater proportion of the public signing up to the Green Deal. If offered an interest rate of 2% through the Pay-As-You-Save scheme, 34% say they are 'very' or 'fairly likely' to take it up with a low interest rate of 2%. However, this percentage drops to a mere 11% with an interest rate of 4% each year and just 7% with an interest rate of 6% per annum.

'It's vital the Green Deal succeeds and inspires a nation of homeowners to want the most energy efficient home possible,' insisted Colin Butfield, head of campaigns at WWF-UK, one of the founders of the Great British Refurb Campaign.

'It is encouraging to see public appetite for the scheme but without incentives it is clear that few will sign up and government won't be able to achieve the carbon savings needed from the UK's housing stock,' he added.

'We can take heart that a swathe of the British public are up for radically transforming their home energy efficiency,' insisted Simon McWhirter, campaign director of the Great British Refurb.

'To unleash this and create real change and real carbon reductions in this market, there is an absolute and urgent need to give people more, both in financial and support terms.

'It is a given that we need some financial kick starts to incentivise people and without these council tax rebates, stamp duty refunds, and reduced VAT on refurb, take-up won't be there.

And it is not just money, but access to good information through improved home energy surveys and reports are vital. The promise is there, but government needs to heed the voice of the people, otherwise it is likely to an empty one.'

The Great British Refurb Campaign is calling on the secretary of state, Chris Huhne, to deliver a strategy for a compelling Green Deal package alongside the forthcoming Energy Security and Green Economy Bill which should include financial incentives such as stamp duty refunds, council tax rebates, and a low interest rates for the Green Deal offers.