Committee recommends VAT cuts to ensure high-standard properties

27 2008
The private rented sector could receive a huge boost after the government recommended a VAT cut for repairs and maintenance to properties.

The House of Commons Communities and Local Government select committee offered a range of proposals last week aimed at further strengthening relations between landlords and their tenants.

But one of the most significant was the suggestion that a tax rate cut could enable landlords to maintain their properties easily, instead of being unable to afford necessary work on them.

Brian Berry, director of external affairs at the Federation of Master Builders (FMB), explained the restrictions landlords currently face.

He told property website HotProperty.co.uk: "The current high rate of VAT on building repair work acts as a disincentive for private landlords to maintain their properties."

The committee argued that a dramatic reduction from 17.5 per cent to five per cent would ensure that properties did not become derelict - thus providing better living conditions for tenants in the process.

A recent survey by researching consultancy ComRes suggested that 72 per cent of MPs supported a VAT cut for all maintenance and repair work in the buy-to-let sector.
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