Property coalition writes to politicians urging them to cut VAT

According to a coalition of business groups and organisations within the construction and property sectors, a cut to VAT on home maintenance and improvement works could have enormous benefits for the wider economy, including new jobs and a green revolution.

Perhaps two of the most notable organisations within this coalition includes the Federation of Master Builders (FMB) and the British Property Federation (BPF) who both insist that the next government should lower home maintenance and improvement VAT from 20 per cent to five per cent.

Apparently, a cut to VAT in this specific area will generate a total figure of £15Bn in new taxes as well as 95,000 jobs and a £1Bn green revolution, with these benefits being a product of the increased investment in housing which would ensue if this cut were imposed.

Furthermore, it is predicted that a reduction in housing maintenance and improvement VAT would increase the deliver of build-to-rent schemes within the housing sector, with build-to-rent already covering a quarter of the housing output in London last year.

The construction and property coalition has written their recommendations in a letter which has been delivered to the leaders of the four largest parties in Britain, with the final suggestion being a meeting of the coalition with the government early on in the next Parliament.

The Chief Executive of the BPF, Melanie Leech stated: “Reducing the rate of VAT on all repairs, maintenance and management of residential property would support the greening and improvement of our housing stock and help the build to rent sector deliver more homes. We therefore urge the next Government to support the Cut the VAT campaign.”

The Chief Executive of the FMB, Brian Berry added: “An amazing 20M floors, 8M lofts, and 5M cavity walls all in need of insulation across the UK, according to the Government’s own figures.

“The four main parties must go further in their policy pledges to promote and incentivise energy efficiency works. Given that homeowners tend to complete these tasks as a consequence of larger home improvement works the rate of VAT on repair and maintenance work needs to be reduced from the current 20 per cent to five per cent.”

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