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News Release from: Federation of Master Builders (FMB)
Edited by the Buildingtalk Editorial
Team on 29 April 2005
FMB urges Government to tackle run-down
Housing
The Federation of Master Builders (FMB) has called for the new Government to radically rethink housing policy, and to reconsider the results of the Barker review in a broader context.
The Federation of Master Builders (FMB) has called for the new Government to radically rethink housing policy, and to reconsider the results of the Barker review in a broader context Ian Davis, FMB director general, called for the Barker Review to be reopened
This article was originally published on Buildingtalk on 27 Jun 2003 at 8.00am (UK)
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"The Barker review is a flawed document".
"Crucially, it fails to consider the use of the many hundreds of thousands of empty homes across the land in meeting the UK's housing needs." In England alone, according to the Empty Homes Agency, there are around 700,000 empty homes.
While some of these are in low demand areas, hundreds of thousands are not and they could make a sizable contribution to Britain's housing for the future.
These empty homes are kept out of use by the current VAT law, which charges 17.5% VAT on the refurbishment of a home, but allows new property to be built VAT free.
Moreover, 17.5% VAT on refurbishment is a disincentive for people to keep their property in good condition, leading to a steady decline in the quality of the housing stock and eventually to homes falling into dilapidation and being deserted.
The Government's own English House Conditions Survey shows a persistent sector of poor quality housing, concentrated in the most disadvantaged areas.
Ian added: "The FMB proposes that the rate of VAT on domestic refurbishment work be reduced to 5% by the new Government".
"This would go a long way to correcting the tax imbalance between refurbishment and new build properties".
"It would also help those in disadvantaged areas to maintain their homes to a higher standard and prevent the number of deserted properties from increasing.".
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