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Housing coalition urges for VAT cut to encourage green home improvements

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Organisations from across the property and construction sectors are campaigning for the next UK government to cut VAT on maintenance and improvement works to people’s homes.

The groups said reducing VAT from 20% to 5% on home improvement works would unleash investment in housing, stimulate the economy and enable the UK’s transition to net zero carbon.

The groups include the Federation of Master Builders and the British Property Federation.

Melanie Leech, chief executive of the British Property Federation, said: “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.”

Brian Berry, chief executive of the Federation of Master Builders, said: “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% to 5%.”

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