New-build VAT 'could not happen at a worse time'

Posted: 23 Apr 2010 10:55:28 GMT

The Liberal Democrats' announcement that if elected into power they will add VAT to all new-build properties has been opposed by an industry expert.

Brian Berry, director of external affairs at the Federation of Master Builders, says the trade association is "totally opposed" to any such move, adding that it could not come at a worse time.

"We have got housebuilding at its lowest level since 1946 and the trends are that actually this year it could fall even further. So to actually put an extra tax on new-builds is at the wrong possible time," he states.

However, Mr Berry goes on to add that the Liberal Democrats also announced plans to cut VAT on repair and maintenance work, which he advises will be a "great boost" for small building companies.

Meanwhile, the Labour party pledged to keep the current stamp-duty threshold of £250,000 for first-time buyers, while the Conservatives stated they will abolish home information packs which they say have caused "significant problems" in the housing market.

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