MPs have recently called for a cut on VAT from 17.5% to 5% on the price of repairing and maintaining a rental property to incentivise landlords to keep up with the maintenance on their properties.

The recommendation has been put forward by the House of Commons’ communities and local government select committee in their report The Supply of Rental Housing. The committee has identified that some landlords are struggling to keep their properties in good condition due to the high cost of refurbishment, which has lead to some properties standing empty as they are not in a fit state to be let. The report describes the rental sector as having ‘the largest proportion of non-decent homes’ and that to heavily tax repairs and maintenance ‘appears perverse’.

The committee’s recommendation said: “The tax system should not impede or deter any housing provider from taking the steps necessary to improve the supply of rented housing.”

Chris Norris, policy officer for the National Landlords Association (NLA), told PIN: “Although this is not a new call by the select committee, the NLA is keen to see measures that bring empty housing stock back into use. A reduction to VAT across the board would be welcomed”.