Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of using (a) tax incentives and (b) other methods to encourage people to renovate older properties.

This Government is committed to improving the quality and sustainability of our housing stock, through improvements such as low carbon heating, insulation, solar panels, and batteries. As the first step of our Warm Homes Plan, at the Autumn Budget, the Government committed an initial £3.4 billion towards heat decarbonisation and household energy efficiency between 2025-2028.

A reduced rate of VAT at five per cent applies to the renovation of properties that have been empty for two years or more prior to the renovation work. This incentivises the restoration of buildings to a state in which they can be occupied, thereby supporting the property market.

Any assessment of further tax incentives to encourage people to renovate older properties would require a comprehensive evaluation of a variety of factors including, but not limited to, complexity, fairness, and simplicity for the taxpayer. The Government keeps all taxes under review as part of the usual tax policy making process and welcomes representations to help inform future decisions on tax policy.