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Housing market conditions continue to deteriorate and instability in financial markets is being felt throughout the industry. Higher materials costs are squeezing margins, placing additional pressure on firms facing dwindling demand.
Brian Berry, Director of External Affairs at the FMB said: "With house building at its lowest level since 1945 the Government needs to act quickly to restore stability in the building industry. The situation is deteriorating at an alarming rate and the Government needs to take urgent action if the building industry is not to suffer any further. The tragedy of it all is that the is a serious undersupply of homes with over 150,000 on council house waiting lists. Action is needed not only to shore up the building industry but the thousands of families who need a home.
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Berry continued: "The Government should be acting now on implementing the FMB's five point plan to kick start the building industry which includes: Tackling the existing housing stock to make our existing homes more energy efficient. There is a new market worth between £3.5 and £6.5 billion per annum to refurbish our existing homes. What is needed is the push from the Government to kick start this market which would not only help the building industry but help meet the Government's target to cut carbon emissions and reduce fuel poverty."
Berry concluded: "The government should also Reduce VAT on repairs and maintenance. Reducing VAT from 17.5% to 5% for all building repair and maintenance work would allow many of our empty homes to be brought back into use as the current high rate of VAT makes them too expensive for many owners to maintain or refurbish and encourages neglect leading to demolition and new build. Reducing the rate of VAT would also make it easier for people to make energy efficient improvements to their homes; not only reducing the carbon emissions of these homes but also making them more economic to heat."
(CD/JM)
