Homes for the South West response to government’s Residential Property Developer Tax consultation
Homes for the South West believe the proposed Residential Property Developer Tax could impact provision of new affordable housing.
The Homes for the South West group of housing associations have responded to the government’s Residential Property Developer Tax consultation, due to conclude on 22 July.
In February the government announced that it would introduce a new Residential Property Developer Tax as part of its Building Safety Package. This tax is intended to impact on the largest residential property developers to help fund the rectification of cladding issues on residential developments.
Our members believe that while many Registered Providers of affordable housing (RPs) may fall under the £25m threshold for this proposed tax, there is a risk that over time more RPs with a development arm may be affected. Homes for the South West believes that imposing this tax on RPs will raise a minimum amount of revenue but will have a negative impact on the provision of affordable housing. The increased tax compliance costs will reduce financial capacity and the viability of new affordable housing.