VAT incentives needed in Pre-Budget Report, FMB demands

The Federation of Master Builders (FMB) is calling on Alistair Darling to reduce VAT from 17.5 per cent to five per cent on repairs and maintenance work.

Should such commands be listened to it could be good news for renovators that are redeveloping existing plots and properties to convert them into green ecohomes.

Richard Diment, director-general of the FMB said Mr Darling must "take radical action now if the building industry is to have any chance of averting the worst excesses of this unprecedented downturn".

House building is at its lowest level since 1945, the FMB says.

With so few houses being built, existing property owners could consider a self build project as a means of moving to a new, larger home.

Mr Diment added that thousands of builders are going to face redundancy in the near future unless action is taken.