The British Property Federation (BPF) has written to the HM Treasury over concerns that tax incentives designed to encourage brownfield development are ineffective.

In the letter, BPF’s director for finance and investment, Gareth Lewis, described the measures as ‘limited’, saying that ‘the scope of the relief is too narrow’ to have any real effect.

The BPF wants to see legislation expanded to recognise the wider range of costs incurred in bringing derelict land back into use. Particular limitations over this brownfield relief mean that there is a large amount of uncertainty about whether any savings would be made.

Lewis said: “It is clearly important that the Government, in developing these proposals, is minded to the difficulties and expenses of making a claim under the current regime. The new proposals must be well publicised to the industry and the benefits of the system must be tangible and easily claimed. This will significantly improve the incentive offered to owners of derelict land.”