News

1 August 2007

Zero Carbon Homes

The Department for Communities and Local Government (DCLG) have confirmed their intention that all new homes should be zero carbon homes by 2016 and have further set the following targets:

• From 2010, all new homes to emit 25% less carbon dioxide
• From 2013, all new homes to emit 44% less carbon dioxide
• From 2016, all new homes to emit zero carbon dioxide

Currently 27% of the UK’s total carbon dioxide emissions come from the household sector of which 53% comes from space heating, 20% comes from water heating and the remainder comes from lighting, appliances and cooking.

The Government is proposing to delivery greener homes by:

• Improving the energy efficiency of new homes and existing homes
• Requiring new homes to have a rating under the Code for Sustainable Homes
• Building new ‘eco-towns’
• Setting minimum standards for water use in new homes
• Emphasising effective flood risk management

The ultimate goal is for a zero carbon homes, which is one that has zero net emissions of carbon dioxide from all energy use over the course of a year, including energy used for space heating, hot water, cooling, lighting, cooking and household appliances.

Achieving this status will require the building to achieve a high standard of energy efficient, for example roof and wall insulation, and electricity and heat used to come from renewable energy.

The zero carbon standard can be achieved across a whole development, as well as in individual homes, enabling developers to use a range of technologies for a whole development, which may not necessarily be located on site.

For the time being it will be possible to offset the emissions for any developments where it would be difficult for developers to achieve zero carbon.  However, which the range of technologies growing, this situation is under review.

Standards for reducing carbon emissions are to be set at national level through Part L of the Buildings Regulations, but local authorities will have the discretion to deliver additional reductions in emissions through their planning powers, including going over and above the minimum standards under the Building Regulations.

Stamp Duty Relief

The Government is planning to introduce a Stamp Duty relief for new zero carbon homes for a limited time-period.

The person claiming the relief will need to demonstrate there are zero carbon emissions from all energy use in the home over the course of a year.

The relief will only be available for sales taking place between 01 October 2007 and 20 September 2012, and will apply to the first sale of a new home only.

100% relief will be available to homes with a purchase of up to £500,000.  For houses over £500,000 Stamp Duty Land Tax will be reduced by £15,000, and the balance will be payable in the normal way.

Links

http://www.communities.gov.uk

http://www.communities.gov.uk/pub/967/HomesforthefuturemoreaffordablemoresustainableHousingGreenPaper_id1511967.pdf

http://www.communities.gov.uk/pub/173/BuildingaGreenerFutureTowardsZeroCarbonDevelopment_id1505173.pdf

http://www.hmrc.gov.uk/budget2007/bn26.pdf

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