News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the June / July 2001 issue RPI news archive

Regeneration VAT incentive falls down - June / July 2001

VAT incentives aimed at promoting housing renovation will not be enough to compensate for the risks landlords face when investing in problem areas, RLA chairman Martin Moylan has told the Government.

The March Budget reduced the VAT rate applicable to the costs of converting residential properties into a different number of dwellings to 5 per cent and also zero rated the selling costs of renovated houses which have remained empty for 10 years or more.

'The Chancellor wants landlords to take risks on properties in regeneration areas to provide more and better quality housing but this concession is not enough to warrant such risks', said Moylan. 'If homes are vandalised and damaged, the 5 per cent VAT rate is going to have no impact whatsoever in recouping those costs and, meanwhile landlords face increasing red tape in accounting for the reduced rate'.
 

other artilces from the June / July 2001 issue

• Asylum seeker threat
• Earnings link points to house price fall
• Dome Minister takes on housing
• New landlords should look to the long term
• Where tenant must act as tax agent
• 'Reasonable steps' absolve blam
• Easy does it
• House prices still risingt
• Alternative to gas
• Regeneration VAT incentive falls down
• Lease preparation costs to be disallowed