Government questioned on seriousness over housing crisis

Government questioned on seriousness over housing crisis

Central Government must prevent local authorities from hindering SME developers with unfair Council Tax burdens, the Federation of Master Builders (FMB) has warned ahead of the Budget Statement.

Brian Berry, Chief Executive of the FMB, said: “If the Government is serious about solving the housing crisis, it must address the issue of unfair Council Tax charges on house builders. Today we are calling on the Government to halt the poor practice of local authorities charging Council Tax on incomplete new homes. Reports from FMB members suggest it has become relatively commonplace for new homes to be deemed complete for the purposes of Council Tax long before they are actually inhabitable.

This is sometimes the case before even basic work has been completed, such as the walls have been plastered or the floors have been concreted.”

Berry continued: “Council Tax is designed to fund services provided to tenants, so there is little justification for levying it on new homes months before anyone could move in. There is a growing concern that Council Tax is being unfairly levied as just another development tax. We accept that there is a case for Council Tax being levied on existing empty properties in order to incentivise these being brought back into use. However, for new homes, it creates perverse incentives for developers to hold back completing these properties until they’ve agreed sales and slows down the delivery of completed new homes onto the market.”


Berry concluded: “What is urgently needed is an agreed definition of when a new home is complete for the purposes of charging Council Tax, and one which ties this point much more closely to the point of inhabitability. This will help ensure against current poor practice in some areas and will also serve to speed up the delivery of new homes. For this reason, we’re also urging Government to review whether the removal of the automatic six month exemption for ‘unoccupied and substantially unfurnished’ dwellings should have been applied to new dwellings, as we fear this is having the unintended effect of further slowing down house building."

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DmitriKara
DmitriKara 29 Jun 2016

I just read another article about eviction rising and this was exactly what was on my mind, Housing has become "cat and mouse"...

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DmitriKara
DmitriKara 29 Jun 2016

I am really not surprised. I've seen one too many impudent tenants and in my humble opinion renters have one too many privileges and options to abuse heir landlord in so many ways...

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DmitriKara
DmitriKara 29 Jun 2016

There is still so much uncertainty and I will surely step back and see what's happening before I could make any decisions on my end.

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ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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NathanGreen
NathanGreen 16 Jun 2016

Seeing that the tenants are quite satisfied with their landlords and the properties is indeed great. I wonder, though, what is the situation in London alone? The tenants face sky-high rent levels in the...

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AndiMur
AndiMur 15 Jun 2016

TheGuardian published the same forecast. But on the other hand, professional brokers express different opinions. According totranio.com, an exit from the EU would not affect the demand/supply imbalance...

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Gary Holmes
Gary Holmes 14 Jun 2016

Having a professionally completed inventory at check-in and check-out is clearly (to me at least) of minor value. Tenants make un-authorised modifications and/or walk off with items that belong to the

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Violet Gibson
Violet Gibson 14 Jun 2016

Cautious people think buying off-plan is reckless, but over the past few years investors have literally made fortunes.Pre-release prices have obvious benefits for the developer, who gets instant finance...

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Kate Windleton
Kate Windleton 14 Jun 2016

An interesting research indeed. I guess that is in complete contrast with the United States where people often move from one coast to another. It will be interesting to hear the trends for people moving...

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NathanGreen
NathanGreen 14 Jun 2016

I think it all depends on the market conditions and how well your company is doing. You will agree that you can't demand more when you're killing yourself just to hang in there. Sometimes you need all

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ChristinaReedUK
ChristinaReedUK 13 Jun 2016

What does "detecting a bad vibe" mean actually. I've had certain vibes like these and yet have always found a reason , if there's any, why I don't like a certain property. The property maintenance might...

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keybanks estates
keybanks estates 08 Jun 2016

Great News for first time buyers, about time two!

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