Credit crunch 'costing developing housing associations thousands in VAT'

Credit crunch 'costing developing housing associations thousands in VAT' Accountancy firm KPMG describes how as the credit crunch worsens, many developing housing associations face thousands of pounds increase in VAT costs. The adverse impact of the credit crunch on the property market has meant that house builders and housing associations alike are experiencing difficulty selling their property stock or securing lower prices than they would have received in a more buoyant market. As a consequence, many house builders have responded by mothballing forward start sites and both house builders and housing associations are postponing or changing their intention from selling newly developed property to using them for rent. The impact of the change of intention may lead to increased VAT costs for associations. Historically, house... [read full story]