The 2013 budget statement included the usual headline grabbers comments Peter Greig, Manager of the Valuation Services Team for Goadsby. This included cancellation of September’s increase in fuel duty, and a cut of 1p in the duty on a pint of beer, however, the underlying message was stark, insofar that there will no u-turn on fiscal policy and the timescale for getting the country’s public finances back on track have been pushed out further still.
The property industry is generally reacting with disappointment to matters conspicuous by exclusion from this year’s budget, but this is tempered with some cautious optimism to potential boosts for the housing and construction sectors.
Business Rates were not covered in the budget statement, which is clearly a blow for property occupiers and owners of vacant units. This high operating cost for the commercial sector is set to remain as the postponement of the next re-valuation to 2017 is being maintained. Furthermore, annual increases shall continue to be based on the RPI inflation index as opposed to the lower CPI index.
Town centres seeking increased infrastructure spending will be buoyed by the announced sum for general infrastructure investment, however, it is felt that the sum shall be insignificant relative to the infrastructure backlog.
The housing sector, particularly the new build and first time sectors have benefitted with the announcement of the extension of the New Buy scheme to the second mover market. It is anticipated that this will, to a degree, create a bridge for the lack of affordable mortgage products available and generate movement in the lower value and new build sectors, which could provide ongoing stimulation to the remaining sectors.
