Will the proposals for financing the removal of Grenfell-style cladding affect community-led housing groups?
The eagle-eyed amongst the CLH community may have spotted that the government has been consulting on a residential property developer tax. The government is committed to paying for the removal of at least some unsafe cladding on blocks of flats. To meet this cost, it is looking to the industry for additional funds via a residential property tax.
At the moment, the tax is only intended to impact on the largest residential house builders and would be a tax on profits. If this intention is followed through, it means that the proposal is unlikely to have much effect on the community-led housing community.
Usually, those affected by proposed legislation lobby for exclusions. In the current circumstances, we imagine that the larger house builders may be lobbying for the government to case its net wider, to further spread the tax burden. Although it seems very unlikely the proposed tax could affect CLH developments, it is worth keeping an eye on the next stage of consultation in case a broader range of developers are included.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.