Insurance News Archive
VAT on new-builds 'could not come at worse time'
Posted by Michael Brown
Placing an extra tax on new-builds would have a negative impact on housing construction, potentially impacting those looking for building insurance quotes.
Commenting on the Lib Dems' proposals to equalise VAT on new builds, Brian Berry, director of external affairs at the Federation of Master Builders, said that the plans could not come at worse time.
"We have got house building at its lowest level since 1946 and the trends are that actually this year it could fall even further," Mr Berry commented.
However, proposals to cut VAT on repair and maintenance work would be a great boost for small builders, he said.
Mr Berry added that the key to getting the housing market going and providing a boost to those looking for buildings insurance quotes, is to improve mortgage liquidity, since people cannot find the finance to buy a property.
The Lib Dems want to bring 250,000 empty homes back into use by offering the people who own them a grant or cheap loan to renovate them.
Meanwhile, the Labour party has pledged to stop stamp duty for first-time buyers on all house purchases below £250,000 for two years and the Conservatives want to abolish home information packs.
23 Apr 2010
