Jul 15 2005
The National Home Improvement Council is concerned about recent reports that the Government’s nationwide revaluation of properties for the 2007 council tax revue may penalise many householders for making essential changes to their homes. Many improvements private could push them into a higher council tax band.
Graham Ponting, Director of the NHIC, says: “If the Government’s Valuation Office chooses to assess properties on a higher council tax scale because improvements have been made this will surely be a retrograde step in encouraging the refurbishment of the nation’s housing stock. “What is most important at the present time is to incentivise homeowners to carry out improvements to their homes, not completely dampen their enthusiasm! Obviously there has to be certain size parameters on home extensions after which they become subject to increased council tax.
“The NHIC urges the Valuation Office to be circumspect in its propsals where householders have taken positive steps to move their homes forward into the 21 Century and use discretion when applying higher tax bands.” Ponting suggests: “The government needs to look closely at its entire tax structure related to home improvements in order to encourage people, especially those on fixed incomes living in run down properties, to carry out essential repairs. One significant move would be to reduce VAT on all home improvements, especially energy saving measures such as high efficiency boilers.”
According to the latest ODPM figures more than five million privately owned homes in the UK are in need of substantial improvement to bring them into line with modern housing standards.
So placing council tax penalties on home improvements will affect the progress and extent to which repairs are carried out.