FMB: Councils are unfairly charging SME housebuilders

FMB: Councils are unfairly charging SME housebuilders



The government must stop local authorities hindering SME developers with council tax burdens, according to the Federation of Master Builders .


The government must stop local authorities hindering SME developers with council tax burdens, according to the Federation of Master Builders (FMB).

The FMB said it has received reports from housebuilders who claim councils are deeming homes ‘complete’ long before they become inhabitable.

Brian Berry, Chief Executive at the FMB, has called for an agreed definition of when a new home is complete for purpose.

Brian said: “Council tax is designed to fund services provided to tenants, so there is little justification for levying it on new homes months before anyone could move in.

“We accept that there is a case for council tax being levied on existing empty properties in order to incentivise these being brought back into use.

“However, for new homes, it creates perverse incentives for developers to hold back completing these properties until they’ve agreed sales and slows down the delivery of completed new homes onto the market.” 



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