The next government should urgently reduce VAT on maintenance and improvement works to people’s homes to help boost investment in the housing sector, stimulate the economy and deliver a credible plan for meeting the UK’s 2050 net zero target, according to a coalition group. 

Organisations from across the property and construction sectors are campaigning for the next UK government to reduce VAT on maintenance and improvement works to people’s homes from 20% to 5% in order to increase activity in the sector. 

More than 20 groups, including the British Property Federation, have signed a letter to senior Westminster politicians. 

Melanie Leech, chief executive of the British Property Federation, said: “Reducing the rate of VAT on all repairs, maintenance and management of residential property would support the greening and improvement of our housing stock, and help the build to rent sector deliver more homes.

“We therefore urge the next government to support the Cut the VAT campaign.”

The Federation of Master Builders (FMB) is also among those to have signed the letter. 

The FMB’s chief executive, Brian Berry, commented: “The four main parties must go further in their policy pledges to promote and incentivise energy efficiency works.

“Given that homeowners tend to complete these tasks as a consequence of larger home improvement works the rate of VAT on repair and maintenance work needs to be reduced from the current 20% to 5%.”

The other organisations to sign the letter are: Bathroom Manufacturers Association, British Blind and Shutter Association, British Woodworking Federation, Builders Merchants Federation, CPRE The Countryside Charity, Civil Engineering Contractors Association, Chartered Institute of Building, Country Land and Business Association, Countryside Alliance, Electrical Contractors’ Association, The Heritage Alliance, HomeOwners Alliance, Insulation Manufacturers Association, National Federation of Builders, National Home Improvement Council, National Landlords Association, Roof Tile Association, Royal Institute of Chartered Surveyors, Scottish Building Federation, UK Green Building Council, as well as The VAT Consultancy.