AMI calls on government to lighten the tax burden on "home improvement work"

The Association of Mortgage Intermediaries (AMI) has asked the government to encourage homeowners to maintain their properties.

Falling property prices could be helped if the government encourages homeowners to preserve and redevelop their homes by lowering taxation, the AMI said.

Chris Cummings, director general of the association, is calling on the state to "lighten the tax burden on building and home improvement work".

"This could be delivered via a VAT reduction on building materials and labour", he suggested.

Mr Cummings stated that the current economic landscape means people are planning to stay in their homes rather than move and also face the additional burden of stamp duty.

The AMI has also called for Gordon Brown's government to help first time buyers on to the property ladder through a reformation of stamp duty and a new tax-free savings scheme that will help potential buyers saving for a deposit.

Citing data from GfK, Kingfisher - the owner of DIY retailer B&Q - said the UK home improvement market grew by around three per cent in 2007-08.