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VAT cut to solve homes crisis

Series: Federation of Master Builders Press Release ; 25 May 2004 (1)Publication details: 2004Subject(s): Summary: The Federation of Master Builders (FMB) believes a cut in VAT rates on refurbishment work will solve the UK's housing shortage. The "Barker review of housing supply: securing our future needs" has failed to consider VAT policy as a means of boosting housing supply, according to the FMB. Research by the FMB estimates that over 700 000 homes are currently empty, while up to seven million properties need renovating. The FMB points out that while new homes benefit from zero-rated VAT, property owners are not encouraged to carry out repairs and maintenance because it is charged at the full rate of 17.5%. FMB press release at http://www.fmb.org.uk/press/fmbnews/250504.asp.
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News article London News article WB4021-08 (Browse shelf(Opens below)) 1 Available 126401-1001

The Federation of Master Builders (FMB) believes a cut in VAT rates on refurbishment work will solve the UK's housing shortage. The "Barker review of housing supply: securing our future needs" has failed to consider VAT policy as a means of boosting housing supply, according to the FMB. Research by the FMB estimates that over 700 000 homes are currently empty, while up to seven million properties need renovating. The FMB points out that while new homes benefit from zero-rated VAT, property owners are not encouraged to carry out repairs and maintenance because it is charged at the full rate of 17.5%. FMB press release at http://www.fmb.org.uk/press/fmbnews/250504.asp.