More examples continue to emerge of the lack of coherent thinking on the provision of affordable housing. This week, two obstacles placed in the way of registered social landlords by the Inland Revenue have come to prominence.
The first of these is the law which seems to run counter to the encouragement by the Office of the Deputy Prime Minister to build houses without a grant. Housing associations are being encouraged to trade while the Inland Revenue is trying to squeeze out every penny. This is because of a tax law that obliges those with charitable status to pay tax on any profit they make – unless they circumvent this loophole by setting up a subsidiary.

The second and more serious instance is the continuing Alice in Wonderland saga in which RSLs face bills running into millions in unpaid stamp duty – every year – because of the recent resurrection in the courts of an ancient law. Housing associations have been lobbying the Revenue over the problem, which will hit those organisations providing temporary and key-worker accommodation the hardest. The Inland Revenue might be reluctant to sweep aside any law that would also jeopardise possible income from the private sector. However lawyers representing housing associations believe that with a bit of political backbone it would be straightforward for the Inland Revenue to forgo the collection of the tax from registered social landlords. Unfortunately, the powers-that-be seem reluctant to budge on the issue – with the possibility that the 15 largest housing associations will be forced to bring about a test case to decide their fate. Those trapped by either of the Inland Revenue's pincer movements would be wise, at least, to lobby their local MPs, and until the government resists such own goals, keep shelling out on very good lawyers.

Housing Today this week launches its Christmas appeal in support of the domestic violence charity Refuge (see page 20). Over the next three weeks we will be highlighting the work of the organisation which provides a lifeline for 80,000 women and children across the country each year. Accurate figures are scarce, but an estimated 20,000 households are made homeless in the course of one year as a result of domestic violence, and Refuge is their first port of call as they try to rebuild their lives.

Two simple ways the government could make the provision of affordable homes easier

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Housing Today