Cut VAT to Cut Carbon on Old Homes

The property industry has called for a VAT cut on home renovation, following new evidence that building new houses emits four-and-a-half times as much CO2 as refurbishing an existing dwelling.

The report by the Empty Homes Agency (EHA) claims that embodied carbon - the CO2 emitted as a direct result of constructing a new building - accounts for nearly three times as much of the building's lifetime emissions as previously thought.

The British Property Federation (BPF) has backed the EHA's call for the 171ž2% rate of VAT on repairs and renovation to existing buildings and to align this with new build (which is currently exempt). The BPF also supports calls for councils to be incentivised to bring empty homes back into use through planning and delivery grants.

The research report, 'New Tricks with Old Bricks - how reusing old buildings can cut carbon emissions', comes amid growing unrest in the housing and mortgage market over lack of credit and with house builders beset by a growing list of green targets.

Liz Peace CBE, BPF chief executive, said: ‘This report throws a welcome argument into the mix and we fully support moves to bring old homes back into use. However, we still need more quality housing so this should not be seen as argument for opposing the government's targets over housing supply or green construction standards.

‘We hear the phrase 'sustainable communities' repeated so much that people seem to ignore its true meaning. We need balance; a mix of old and new, with homes and communities well supported by infrastructure, education, health and business. 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.’

Read the EHA press release here: http://www.emptyhomes.com/documents/pr/130803_newtricks.doc