13th February 2009 – FOR IMMEDIATE RELEASE
Today’s Conservative Party announcement that empty houses in the UK would be used to house those on council house waiting lists, under a future Conservative government, is welcome news at a time when there are 1.8 million families waiting for a home and when there are 850,000 empty houses in England alone. Many of these empty homes will however be uninhabitable warns the Federation of Master Builders (FMB).
One of the key reasons why there are so many empty houses in the UK 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 and encourages neglect leading to demolition and new build. Moreover, the financial disincentive to repair and maintenance work caused by the high rates of VAT is often the root cause that allows homes to fall into disrepair in the first place. The resulting vacancy and dereliction blights whole neighbourhoods, depresses property values and attracts crime, putting unnecessary demands on the police and fire services. Conversely, the regenerative effect on the street and the wider neighbourhood of reusing empty property can be striking.
The Empty Homes Agency believes that the 17.5 per cent VAT rate (15 per cent until January 2010) favours new build over re-use, and therefore greater use of finite resources like Greenfield land. They argue that it actively encourages neglect and decay. Bringing empty buildings back into beneficial use is an essential part of sustainable development and improving people's quality of life.
Speaking after the Conservative Party announcement, Brian Berry, Director of External Affairs at the FMB said:
“On paper the Conservative Party’s proposal looks great, however the reality is that many of these houses will be substandard in terms of their state of repair, kitchen and bathroom facilities, heating and insulation, some may even be uninhabitable.”
Berry continued:
“If the Conservative Party is serious about this policy then they should support our campaign for a reduction in VAT to five per cent for all building repair and maintenance work. This would allow the owners of these properties to bring them up to a decent standard. A reduced rate of VAT has the potential to make a positive impact in areas that need regenerating as well as supporting environmentally sustainable improvements to properties that reduce carbon emissions.”
