At a time when house building is at its lowest level since 1945 today's announcement is little more than cosmetic surgery to mask the more fundamental problems about providing the millions of new homes that are needed in this country, says the Federation of Master Builders (FMB) in its response to today's announcement by the Housing Minister, Caroline Flint MP entitled 'Facing the housing challenge - action today, innovation for tomorrow.'
Brian Berry, Director of External Affairs at the FMB said:
"The Government needs to stop sending out mixed messages to the construction industry. On the one hand it talks of wanting to build more homes then on the other refuses to take the necessary decisions in order to allow these homes to be built."
Berry continued:
"If the Government is really serious about increasing the supply of housing why then is it introducing the Community Infrastructure Levy on housing development? There are 675,000 empty homes in England, 288,000 of which have been empty for more than six months. A key reason for this situation is the fact that some buildings require considerable repair work before they can be lived in. The high rate of VAT makes them too expensive for many owners to maintain or refurbish. For example, Hyde Housing Association recently paid £120,000 in VAT on a project involving 21 homes. With the reduced rate of five per cent VAT, they would have saved enough to refurbish another three homes. Yet on the issue of VAT the Government refuses to do anything meaningful."
Berry concluded:
"The planning system is the single most important factor inhibiting the construction of new housing. Again we have heard nothing meaningful from the Government about reforming the planning system to make it more streamlined, less bureaucratic, more predictable and quicker. It is time the Government freed the construction industry from the burden of unnecessary bureaucracy and taxation and allow builders to get on with building the homes that are so badly needed."
16 July 2008
