Cut VAT on Residential and Commercial Extensions

Well further to my recent blog I have actually started an e-petition trying to encourage people to support the cutting of VAT on building extensions for a period of two years.

Cut VAT on Building Extensions

I thought that instead of the usual apathy let’s try and do something about it - you never know, it may work!  So please feel free to sign-up to the petition.  I am sure the reduction in VAT for extensions would be a tremendous boost to the construction industry. Thinking about it logically, if by this reduction 5000 people across the country were inclined to undertake a £50,000 extension, that would result in another £250million circulating around the economy.

The current 20% VAT on a £50,000 extension is another £10,000 which goes straight to the Government.  Our clients say that this additional money is currently stopping them from extending primarily for two reasons:

1) the cost itself and 
2) it takes the value of the house above the price ceiling of the other properties in their road.

What I consider important is that this would boost local economies around the country, helping small builders, electricians and plumbers etc.  All these people would then surely look to spend back into their local economy.

The link for the e-petition is

http://epetitions.direct.gov.uk/petitions/39637

Please have a look and consider signing.

Building Starts on Barn Conversions

The construction team have started work on a pair of barn conversions this month.  The project is to convert a barn 30m long by 6m wide into a pair of two bedroom cottages.  Agrarian Ltd (Architecture) secured the “change of use” planning and  building control approvals and now it is over to the Agrarian Construction team to complete the project.

Work is progressing well despite the weather doing its best to upset the situation.  Last week we managed to pour the concrete floor slab.  The slab is a reinforced concrete raft which will carry the internal walls and ultimately the roof loading. 

The pour was 46 cubic metres of concrete which was placed by pump.  Currently the internal block walls are being constructed, under tarpaulins, to ensure progress during the poor weather.

From a planning viewpoint we have made various applications over the last few weeks ranging from houses and flats to barn conversions.  I was also lucky enough to discuss a possible new dwelling for a client about half an hour from Geneva; I would certainly enjoy the site visits for that project.  Distance certainly isn’t a problem. The flight is only one hour and ten minutes from the City of London Airport and then it’s a half hour drive from Geneva airport.

All of the politicians are now looking at ways to improve the economy by boosting the construction output, which is a great thing, but let us wait until something actually happens before we “put the bunting out”. 

We are also currently compiling a planning application for another equestrian centre, veterinary practice and key workers’ dwelling. These schemes are being prepared for planning submissions, with the intention of construction works starting after Christmas.

I see Labour want to build lots of affordable houses to boost the economy - good idea but unless they tell the banks to lend then people won’t be able to either build or buy them.  Perhaps I should start an e-petition to get politicians to reduce VAT on extensions for two years down from 20% to 5% - now that would help. I shall investigate and let you know how I get on.