Investing in energy
Changes to stamp duty and income tax are important. But what the chancellor said about energy will have just as much impact on the property market in the longer term.
Extending the energy price guarantee, even on less generous terms, will help to ease affordability pressure for those struggling with their bills. In turn, that means we can expect fewer households to run into arrears on their rent or mortgage payments.
Longer term, government has announced an Energy Efficiency Taskforce, with a goal of reducing household energy consumption 15 per cent by 2030. This is likely to include funding for insulating homes, potentially alongside measures to penalise property owners who do not invest in efficiency improvements.
These incentives will lead to a widening price difference between properties that meet the efficiency standards and those that do not. Whether that manifests as a green premium or a dirty discount all depends on the balance of measures HM Treasury announces in the years to come.
Lawrence Bowles is a director in the Savills residential research team
