A stamp duty rebate for home-buyers who improve the energy efficiency of their houses has been proposed by a Conservative policy group.

The Quality of Life group has suggested capping the energy use of domestic appliances such as fridges, computers and tv’s. Also proposed are cuts in council tax and VAT for those who make the move to ‘green’ efficiency.

The group – chaired by ex-environment secretary John Gummer and green activist Zac Goldsmith – say that household goods which exceed energy limits should be banned from sale in the UK. Products with standby lights which stay on permanently should also be outlawed, while a labelling system should be introduced to help consumers compare the energy usage of electrical products – similiar to energy efficency labels on washing machines and fridges.

Speaking on BBC’s Sunday AM programme, green activist Zac Goldsmith, one of the chairs of the Quality of Life group said: “To upgrade your home is always going to be a disruptive process so the best time to do that is at the point where it changes ownership.

We should offer very generous stamp duty reductions – rebates – if your home is passed on in the best possible condition.

And I think if you do that, it becomes less of an ethical decision and more of an investment – a financial decision.”

The proposals are not binding on Tory leader David Cameron, who has already stated his green credentials. More details on the proposals are due on Thursday 13th September.