Your next home may be cheaper if it is greener

The government is pledging that all new homes will be carbon-neutral by 2016 and has already removed stamp duty from new-builds that comply.

Although mortgage lenders are traditionally wary of funding unconventional restorations of listed properties, and of unusual dwellings, such as log cabins, planners, seeking to increase housing stock, are predicted to look favourably upon environmentally innovative and practical solutions to drainage issues and houses that are sympathetic to the properties of the landscape.

Simon Harris, spokesperson for the independent financial advice firm
Lansdown Place, says: "Eco homes have yet to make sufficient impact, probably because there are not enough of them to warrant any particular response from lenders generally.

"However, specialist and 'green' lenders are bringing products to market in anticipation of more property being built in this area over the coming years. In my view this is a potential growth area; the present government has expressed its support for carbon neutral housing and with limited land available for building, planning consent for 'green' properties will be more readily available."

In addition to this, home insurance premiums can be reduced by energy efficiency and other home improvements. Householders should mention such features when buying their policies.

05/01/2008 12:08:45