Property Type Any House Flat/Apartment Bungalow Studio Land Commercial Other Location Any Harrogate Areas Wetherby Areas Bradford Areas Leeds Areas Wakefield Areas York Areas Doncaster Areas Sheffield Areas Areas Rent Per Month Min £100 £200 £300 £400 £500 £750 £1000 £1500   Max £200 £300 £400 £500 £750 £1000 £1500 £2000 £2500 No Limit Bedrooms Any At least 1 At least 2 At least 3 At least 4 At least 5 Furnishings Any Furnished Furnished/Unfurnished Part Furnished Unfurnished

RICS has submitted its recommendations to HM Treasury ahead of the UK Budget 2011

The submission recognises that significant cuts were needed in the Comprehensive Spending Review to help reduce the deficit and calls on the UK Government to now use the property and construction sectors to support the wider economy. The axe has now been wielded and the Budget provides an opportunity to support innovation and growth in the economy to ensure an effective and sustainable recovery.

Measures such as cutting VAT on repair and refurbishment of buildings, supporting investment in carbon reduction measures, reinstating empty commercial property rate relief and changes to the tax system to support greater investment in residential property would be supported by the property sector.

Property and construction act as significant drivers of growth in the wider economy. Every £1 spent on construction contributes £2.84 to economic activity and the industry employs around 900,000 people. The value of all property in the UK is over £4500bn and this sector employs some 500,000 people. Encouraging activity in these sectors will promote economic recovery and provide sustainable growth in the long term.

As a professional body acting in the public interest, RICS is able to offer informed and impartial advice on the ways in which the land, property and construction sector can significantly contribute to economic growth. In the submission we propose a package of measures designed to encourage growth in the housing and commercial property sectors.

Key points

• Empty property rates and the 20% VAT rate currently act as barriers to activity in commercial property and construction. Reform of these two taxes, including an extension of empty property rate relief and a reduction in VAT for repair and maintenance activity, would provide a significant economic boost. As well as increasing activity, changes would support regeneration, provide new property for growing businesses and help meet carbon reduction targets.
• Changes should be made to the tax regime and Real Estate Investment Trust (REIT) structure to encourage institutional investment in residential property and encourage additional housing supply.
• Forthcoming RICS-commissioned research will examine the UK land and property tax system as a whole; and the impact of the recession on PFI/PPP and implications for the future, drawing on international experience. We will be happy to share emerging findings with HM Treasury in due course.