Tiffany Forshaw, Associate Director, Residential, Colliers International, commented:

“No new tax on property is an unexpected, but welcome Christmas gift. It’s good for domestic and foreign purchasers alike. In recent months many foreign investors have adopted a wait and see approach to investing in prime UK residential assets. Rumours of increased stamp duty, annual levies and Capital Gains Tax on disposals has impacted in recent months. These fears have now been dispelled.

“The announced funding to create 120,000 new homes is small in comparison to the 3 million plus new homes required by 2020. We would have liked to have seen a greater commitment from the Government here.

“Investment in flood defences is also welcome and should potentially mean more development of new homes in areas which have previously been ‘undevelopable’, allowing more sites to come forward.”