BPF Spotlight Series: Finance Committee
For this edition of our Spotlight Series, we caught-up with Assistant Director Rachel Kelly, who is secretariat of our Finance Committee. Here’s what she had to say about the Committee and its work:
What’s the remit of the BPF Finance Committee?
The Finance Committee is interested in anything that affects the flows of capital into real estate, whether that be debt or equity, and is broadly seeking to improve the legislative, fiscal and regulatory conditions that affect our industry.
Who sits on the Committee?
The committee is largely made up of CFOs from a number of our investor member firms, as well as numerous accountants, lawyers and financiers that support the sector.
What issues are top of the agenda for the Committee at the moment?
This committee broadly oversees and is interested in the work of our Tax, VAT and Technical Accounting Groups – and also helps support our other committees when case studies and evidence is needed to illustrate the financial impact of different property-related policies. Most recently, members of this committee supported with our engagement with MPs and officials on the abolition of Multiple Dwellings Relief (MDR) to illustrate how this change could impact on the Built-to-Rent and Student Accommodation sectors, and ultimately stifle investment into new rental homes.
Looking ahead to the next 6-12 months, what are the key things that the Committee are looking out for?
As with most of our committees right now, this committee will be keen to see what new policies emerge from the next Government and be ready to provide support in evidencing and communicating what the impact of new policies could be on our sector. More generally, this committee will continue to be interested in the impact of emerging trends and new technology on the property industry.
If the Committee could implement one policy to help the sector, what would it be?
The net zero agenda, and particularly, the need to retrofit our property stock to improve energy efficiency standards is a huge priority for our sector – and financing this retrofitting activity will be a huge challenge. A lot of rules and regulations will feed into supporting this activity including the lending environment, fiscal measures, financial regulations, carbon reporting requirements etc. However, on the tax side, we have long advocated for the VAT rate on repairs and maintenance works to homes to be reduced from 20% to 0% (which would align with the 0% rate applied to the construction of new homes). This policy increasingly seems like a no-brainer in an era where we need to be doing everything we can to recycle and reuse what we currently have, as well improve the energy efficiency of our homes.
About Rachel:
Rachel is a chartered accountant by background and worked at PwC in the funds tax team before joining the BPF. Rachel broadly looks after most areas of tax and finance policy at the BPF – and is celebrating her 10-year anniversary with the BPF this year!
