There is growing concern among construction professionals that homeowners will not rush to take advantage of the Green Deal.
A survey by the Federation of Master Builders (FMB) revealed that 44 per cent of its members thought consumers would be unlikely to adopt the scheme when it is introduced in 2012.
Under the Green Deal, households are encouraged to install energy efficiencyimprovements in their property and repay the cost through their energy bills. The loan will also be tied to a property, so people moving home will not have to take the costs with them when they leave.
Brian Berry, director of external affairs at the FMB, suggested that in order to encourage greater uptake of the Green Deal, the government should introduce added incentives.
He explained that 70 per cent of survey respondents said that cutting VAT to five per cent on energy efficiency materials and work would make the scheme more appealing, while more than a quarter said cutting council tax would also provide an incentive.