Property industry renews call for VAT cut on home refurbs

The property industry has called for a VAT slash on home renovation, after a report released this week found old houses could be more environmentally friendly than new.

Empty Homes Agency’s (EHA) report ‘New Tricks With Old Bricks’ found housebuilding emits more than three times the amount of carbon dioxide than previously estimated.

In a study of six homes, it found new homes gave off 50 tonnes of embodied carbon dioxide during the building process, while refurbished homes each gave off 15 tonnes.

And while it says well-insulated new homes make up for their high energy costs with lower rates of carbon dioxide emitted through everyday use, this takes more than 50 years.

British Property Federation (BPF) chief executive Liz Peace said the 17.5% VAT on repairs and renovations should be aligned with tax on new build and councils should be offered grants to bring empty homes back on the market.

“Many empty homes could play a key role in meeting the government’s need to improve housing provision and cutting VAT on refurbishment would be an incentive to encourage not just an increase in supply, but an improvement in the eco-friendliness of that supply,” she said.