Developers see red at Lib Dem VAT proposals

Liz Peace, chief executive of the British Property Federation, said:

“It’s a well reasoned and wide-ranging Manifesto document and our only slight reservation is that many of the changes being proposed are large scale ones which may well not be double within a five year parliament. But given the LIbe Dems could well hold the balance of power in their hands, it is good to see they have a firm grip on many of the issues faced by society and the economy.

“The fly in the ointment as far as reducing VAT on house repairs is the rather large one of increased VAT on new homes. However, let’s not kid ourselves that Tory plans to cut stamp duty for homes up to £250,000 will be a silver bullet for the woes of first time buyers. Affordability is determined by whether you can get your hands on finance, not by whether someone has knocked a tiny 1 per cent off the purchase price of the property.

David Bexon, Managing Director of SmartNewHomes.com, said:

“The Liberal Democrats’ plan to introduce VAT on new build properties is sheer madness.

“There is already an acute housing shortage in this country and unemployment is not only at its highest level for 16 years, but is also still rising. Nick Clegg and Vince Cable are campaigning on a platform of ‘fair taxes for all,’ but what can possibly be fair about choking an industry that offers a valuable source of jobs and forcing up house prices, locking even more people out of homeownership?”

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