Master builders want VAT reduction on building repairs
by Gill Montia
The Federation of Master Builders (FMB) is petitioning the Government to apply radical measures to bring the UK’s empty buildings back into use.
From April of this year, owners of empty and derelict commercial buildings will be under pressure to re-let or sell their properties because the empty property rate charged by local authorities is rising from 50% to 100% of the basic occupied business rate.
The FMB believes that this measure should be supported by a cut in the VAT charged on building repair work from 17.5% to 5%, as this would increase housing stock.
The FMB’s director of external affairs, Brian Berry, says: “The 17.5% rate of VAT is an unacceptable brake on the regeneration and re-use of vacant and under-used buildings. Bringing empty buildings back into beneficial use, in both town and country, is an essential part of sustainable development and improving people’s quality of life.”
Meanwhile, housing charity Shelter, is keen to see greater use of Empty Dwelling Management Orders (EDMO), which give councils in England and Wales control of private property that has stood empty for over six months.
Current estimates for England put the number of such properties at around 280,000.
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