Reducing VAT on home improvements could stimulate property investment

 

Building and property organisations are lobbying for a reduction in VAT on home improvement work, but will the next government support it?

The Federation of Master Builders (FMB) and the British Property Federation (BPF) are among the organisations lobbying for a reduction in value-added tax (VAT) charged when people undertake home improvements and maintenance works.

Aimed at the next UK government, the groups want to see VAT move from 20% down to 5%. Construction and property experts believe this would jumpstart the economy, benefit the UK’s move to net zero carbon and stimulate more investment in the housing sector.

The FMB’s chief executive, Brian Berry, said: “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% to 5%.”

He added: “The four main parties must go further in their policy pledges to promote and incentivise energy efficiency works.”

Leaner VAT means greener homes

Melanie Leech, chief executive of the BPF, said: “We urge the next government to support the ‘Cut the VAT’ campaign. Reducing 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.”

Big property names sign up

Organisations signing the letter to Westminster Party leaders are: Bathroom Manufacturers Association, British Blind and Shutter Association, British Property Federation, British Woodworking Federation, Builders Merchants Federation, CPRE The Countryside Charity, Civil Engineering Contractors Association, Chartered Institute of Building, Country Land and Business Association, Countryside Alliance, Electrical Contractors’ Association, Federation of Master Builders, The Heritage Alliance, HomeOwners Alliance, Insulation Manufacturers Association, National Federation of Builders, National Home Improvement Council, National Landlords Association, Roof Tile Association, Royal Institute of Chartered Surveyors, Scottish Building Federation, UK Green Building Council, The VAT Consultancy.

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Reducing VAT on home improvements could stimulate property investment

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