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Budget 2021 Predictions: Property & Construction

Heather Powell looks ahead to what measures the Chancellor should introduce for the property & construction sector in his upcoming Budget.

Housebuilders paying for cladding remediation

HM Revenue & Customs (HMRC) need to provide details on the development tax to be introduced in 2022 to ensure that the delivery of new homes is not stalled by uncertainty about how the tax will be imposed and the impact it will have on the cash flow of housebuilders.

HMRC must provide clarity about the new high-rise building levy being introduced in 2022 to ensure that the delivery of new affordable homes is not stalled due to uncertainty about how the levy will be imposed, how much it will be, and the impact it will have on the viability of developments.

Developers who have completed all remediation work on flats where cladding had to be replaced must not be required to also contribute to sorting out the legacy issues created by their competitors. We need to reward this ethical decision to sort out a problem and make them exempt from the proposed development tax.

Landlords need support

Rates relief must be granted to landlords who own empty properties previously occupied by the retail, leisure, and hospitality sectors. These landlords, who were unable to collect rent from March 2020 and who are now left with empty properties that urgently need to be adapted for alternative uses, need to be supported if our high streets are not to be full of boarded-up units that pull the whole area down.

Green agenda

The property & construction sector has a major contribution to make in achieving carbon zero by 2050. HMRC should encourage the use of green components and construction methods by introducing a reduced rate of VAT on ‘green materials’; a move that the EU can no longer ban.

The VAT rate on all products that can improve the carbon emissions of a home should be cut to reduce the cost for households making their own contribution to helping the UK achieve carbon zero by 2050.

Would you like to know more?

If you have any questions or would like to discuss your specific circumstances, please get in touch with your usual Blick Rothenberg contact or Heather Powell, using the details on this page.

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