Shadow Chancellor Sir Mel Stride visits Cavanna Homes’ HQ

Torbay-based homebuilder Cavanna Homes hosted Shadow Chancellor Sir Mel Stride at its Torquay headquarters last week to discuss key challenges impacting family businesses and homebuilders in the South-West.

Sir Mel, who is in Kemi Badenoch’s shadow cabinet and also MP for Central Devon, met Cavanna Homes chairman Keith Miller and Jeremy Cavanna, a third-generation family shareholder of the 102-year-old business. He was accompanied by former Torbay MP Kevin Foster.

Keith Miller raised concerns with Sir Mel around the forthcoming changes to Business Property Relief (BPR), which are similar to the farmers’ concerns around changes to Agricultural Property Relief in that both will negatively impact family businesses. He said: “Plans to restrict inheritance tax relief available for agricultural and business property will have a serious impact on a whole range of family businesses.

“We are a fourth-generation business with family-only shareholders and over the 102 years we have been trading the family have reinvested wealth back into the business to support its long term growth, this proposed change has the potential to change the level of reinvestment to assist with future Inheritance Tax liabilities.

“Family businesses across the country will be extremely concerned about this proposed change to BPR and recent research carried out by Family Business UK has identified that it is more likely to shrink growth in Family Business in the future and will in fact result in a net fiscal loss to the Government of £1.9 billion.”

Cavanna Homes, an HBF 5-star homebuilder was founded in 1923 in Torquay and still has its headquarters in the town. The company is currently building new homes on 10 sites in Somerset, Devon and Cornwall and has already raised its concerns with Family Business UK and Torbay MP Steve Darling.

In addition to concerns around Business Property Relief, Keith Miller, Jeremy Cavanna and Sir Mel Stride discussed the current state of housebuilding in the south-west and a decline in the rate of sales caused, in-part, by an oversupply of second-hand homes that are now outstripping demand.

Mr Miller explained: “A significant number of holiday homes are being placed on the market in our region by owners who are selling-up because new council tax premiums have seen council tax double on second homes in some local authority areas. Former rental properties are also coming onto the market due to the forthcoming Renters Rights Bill which will strengthen tenants’ rights and potentially increase costs for landlords.”

He added: “With the disparity between income and average house prices in the south west, and no-longer any support available in the shape of Help to Buy, it’s become increasingly difficult for first-time buyers to get onto the property ladder. Even the recent relaxation on criteria for obtaining mortgages is unlikely to make a big difference.”