Changing 'golden brick' VAT rules to accelerate affordable housebuilding

HM Revenue & Customs and HM Treasury have launched a consultation on the potential application of the zero rate of VAT for land to be used for social housing.

Trailed in the 2025 Autumn Budget, the government is seeking to simplify and reduce the cost for housing associations acquiring land which they will use to build social housing.
 
In this consultation, the government proposes applying a zero rate of VAT to bare land used for building social housing. Currently, the earliest point the zero rate applies is at ‘golden brick’ stage (the construction above foundation level).
 
Moving this zero rating earlier in the development process would enable title transfer to the housing association to be brought forward rather than when each plot hits the ‘golden brick’ stage.

We are working with the NHF's tax advisors, BDO, to submit a response on behalf of the sector, and would welcome member input.

This includes hosting a virtual roundtable on Wednesday 15 July 2026, 2pm-3pm.

Please contact us to share your views or to take part.