The Empty Homes Agency Ltd

Downstream Building
1 London Bridge
London
SE1 9BG
Phone: 020 7022 1870
Fax: 020 7681 3214
Email: info@emptyhomes.com
Web: www.emptyhomes.com

Wednesday 11th March 2009

For immediate release

UK ‘SHOULD CUT VAT URGENTLY’ TO HELP TACKLE EMPTY HOMES

“The UK Government should seize the opportunity presented by yesterday’s

vote on VAT reform and slash the 15 per cent. tax on repairs and renovation
that encourages property owners to leave homes empty and penalises efforts
to bring them back into use.”

This was the message from the Empty Homes Agency (EHA) today
(Wednesday) following the decision at the ECOFIN meeting of European
Union finance ministers in Brussels yesterday to allow EU member states to
charge VAT at five per cent. on home maintenance and repairs1.

Henry Oliver, the EHA’s Policy Advisor, commented:

“This is a fantastic first victory for the campaign to reform VAT that we and our
partners in the Cut the VAT coalition2 have been waging for well over a year
now. For years the UK Government has cited EU rules as its excuse for not
acting to cut the rate of VAT on repairs and renovation, so we’re hoping to see
a much more positive stance from the Government from now on.”

VAT on repairs and maintenance makes it harder for struggling homeowners

to keep the properties where they live in decent condition, building up
problems for the future. Once homes are empty, VAT encourages owners to
leave them for two years until they qualify for the lower (5%) rate. And the
longer you leave homes empty the more they deteriorate, so the more
expensive and time-consuming the job of eventually returning them to use
becomes.”

There are at least 943,000 empty homes in the UK. Cutting VAT on home
repairs and renovation would help prevent that figure from rising even further
and speed up action to fill the homes that do fall empty.”

NOTES FOR EDITORS

1. The framework governing VAT in the EU is set out in the VAT Directive 2006/112/EC
(November 2006), Articles 93 to 130 and Annexes III and IV.
 2. The Cut the VAT coalition is spearheaded by the Federation of Master Builders. Members
include the Civic Trust, the CLA, the National Trust, the RICS and the TCPA. For more information
see: http://www.cutthevat.co.uk/cut-the-vat/.

For more details, please contact:

Henry Oliver, Policy Advisor

t: 020 7022 1869 (w)
020 7231 3128 (h)
e: henry.oliver@emptyhomes.com

David Ireland, Chief Executive

t: 020 7022 1867 (w)
07941 451550 (m)
e: david.ireland@emptyhomes.com

Shashi Ioannides, Communications Manager

t: 020 7022 1865 (w)
07957 473315 (m)
e: Shashi.Ioannides@emtyhomes.com