In today’s Budget, George Osborne announced a number of measures that will significantly boost the construction and housing sectors. All the measures however were reliant on borrowing from the Government to drive them through.
James Shorthouse, Director at Colliers International said:
“The ‘Help to Buy’ proposals will reduce the barriers to home ownership for those seeking to get on to and then climb the housing ladder. In doing so, this will unlock sites with existing permissions that were previously undeveloped due to lack of access to finance for would-be purchasers. This is great news if you are a developer that has an ‘oven-ready’ site.”
“Overall, it remains to be seen what impact increased homeownership opportunities will have on housing affordability and meeting identified need.”
“There is also a bigger question about where growth will be directed in the longer term. There is a need for national guidance to direct investment in the medium and long term and perhaps now is the time for a national spatial plan to address this.”
Shorthouse continued: “An increase in the funding for lending scheme and the new business bank will be welcomed by SME’s. Whilst the reduction in corporation tax to 20%; and removal of stamp duty on shares traded on growth markets; will draw investors back to UK business, with a positive impact on occupier demand.”