Call for mortgage restrictions on inefficient homes

Date:Thursday 25th February 2010
Author: Max Freedman

Homes which are not energy efficient should receive less help with their mortgage, in the view of one expert.

Andrew Leech, director at the National Home Improvement Council (NHIC), said that unless individuals plan to make energy efficient changes to their new properties, they should not receive as much help in obtaining a loan.

"You possibly won't get a mortgage unless you are planning to increase the efficiency of the house by [around] another 50 per cent," Mr Leech recommended.

He continued that he believes it will start to be the case that homeowners will find it hard to sell their properties as the prospective purchaser will not be able to get a good enough deal on a loan as the current tenant has not brought it up to a certain standard.

The level of fuel efficiency in homes is improving, according to The English Housing Survey by Communities and Local Government, which found that the average standard assessment procedure (SAP) rating increased from 42 to 51 between 1996 and 2008.