Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the implications for her policies of the report entitled Tenure change: turning existing dwellings and buildings in social homes, published by the Bevan Foundation and Shelter Cymru in March 2026; and, in that context, what assessment has she made of the potential impact of VAT on a) general refurbishment works and b) renovation of empty dwellings on the number of empty properties being brought back into use for social housing in Wales.

To support the re-use of existing buildings for new homes, conversions of buildings from a commercial to residential use, the renovation of properties that have been empty for two or more years, and conversions from one residential use to another all benefit from a reduced 5% rate of VAT.

General refurbishment works are subject to the standard 20% VAT rate, which applies to most goods services. Exceptions to the standard rate have always been limited and balanced against affordability considerations.

The Government is supporting the delivery of new social housing through the VAT system by preparing to consult on a zero rate of VAT for the sale of land intended for new social housing. This is specifically intended to simplify and accelerate the construction of social housing.