With a focus on economic growth, property experts have said this can’t happen unless the housing market is fixed. So, what exactly did Chancellor Jeremy Hunt announce about the property industry?
1. Measures to tackle the labour shortage
Speaking about boosting economic growth, Hunt stated he would tackle the labour shortages that stop businesses from recruiting. This included getting early retirees back into work and making work more accessible for those with disabilities.
2. The UK will dodge recession
The UK will not enter a technical recession this year, due in part to the changing political landscape globally and the enforcement of measures announced in the budget, adding deficit would fall in every year within the five year plan – according to the OBR.
3. Inflation expected to fall
The Chancellor referenced the Office for Budget Responsibility’s prediction of a 2.9% fall on 2022 Q4’s 10.7% rate of inflation, giving hope to the idea that labour and material costs may be lower by the end of 2023.
4. Financing reforms for start-ups?
“We need to build a more diverse financing system for high-growth firms”. Discussing the collapse of Silicone Valley Bank, Hunt addressed the need for major reforms to the financing system which could be a focal point in the Autumn Budget.
5. £200m for local regeneration projects
The Budget has pledged £200m for high-quality local regeneration projects as part of the Government’s Levelling Up plans, with over £400m committed to new partnerships.
6. Disappointment over lack of decarbonisation commitments
Those in the property industry have criticised Hunt for failing to increase local housing allowance, expressing their disappointment over the failure to allocate further funds for decarbonising homes.
7. Nutrient neutral sites
In a bid to end the housing backlog, the Government last week pledged to allocate funds towards nutrient mitigation schemes, a resolution for an issue that has haltered the construction of thousands of new homes.
8. Trailblazer devolution deals
Regions outside of London will be able to take the reins on affordable housing in a Budget first, enabling Mayors to take control in this area.
9. £1m annual investment allowance
Small businesses have been promised an increase in their annual investment allowance, now standing at £1m since the Spring Budget. Hunt confirmed the full value of their investments will now be fully deductible from each year’s taxable profits.
10. Long term returns
With the lifetime pension contribution limit lifted, lower mortgage rates, and increased capital allowances, property developers can expect to see bigger savings and further investment into property portfolios; with greater returns anticipated down the line.
Was the Budget good for the industry overall?
Whilst the housing market wasn’t directly impacted by the Spring Budget announcements, there were plenty of pledges, policies, and promises that developers and those in the property industry can expect to see over the coming months.
Although stamp duty remains unchanged and there were no obvious changes for landlords, a decrease in inflation, labour shortages, and finances, and the implementation of cost-effective strategies have been outlined for the sector as a whole.
Focusing on boosting economic growth, everything else is hoped to follow through so by the time the Autumn Budget comes around, the industry should be more grounded than it was before.
Who are we?
From advice around feasibility, cost planning, undertaking the work in the current market, and specifying works before overseeing and managing the implementation of changes in accordance with EPC corresponding report recommendations, Sillence Hurn is working closely with clients across the South to help improve their properties to the required standard.
Contact a member of our team or speak with us today on 02380 014786. Email us at enquiries@sillencehurn.co.uk
