United Kingdom - Government unveils VAT relief for renovations

Britons inspired to do-up their property by the likes of Grand Designs and Property Ladder have received a boost from the government with the announcement for new plans regarding VAT relief.

The measures, announced in yesterday's Pre-Budget Report, will see VAT reduced to five per cent for the renovation of properties that have been empty for two rather than three years.

But the Royal Institution of Chartered Surveyors (Rics) has said that this is not enough, adding that repairs that reduce the amount of carbon produced by a property and other green developments should also be encouraged by reductions in the rate of VAT.

"The current difference in VAT rates between new build (0 per cent) and refurbishment (17.5 per cent) is perverse given that annual new build amounts to less than one per cent of the total housing stock," commented Rics UK public policy manager Luke Herbert.

The announcement comes as Econoloft has said that loft conversions provide a home with a "wow factor" as well as boosting its value.