DJB CEO Peter Allinson gives his reaction to today's budget:
"This is an optimistic budget from a Chancellor buoyed by better-than-expected economic growth. He is clearly trying his best to support business, and rightly so as they will be front and centre of the UK’s post-pandemic recovery. Steps he has taken on business rates are a welcome move, although no doubt many retail and leisure operators will still be holding out for more fundamental reforms. The £1.8bn investment earmarked for the development of 160,000 homes on brownfield sites is a welcome move; although when viewed alongside the scale of the housing crisis, this sum falls short of what many will want to see. Let’s not forget the cladding debacle that has gone on for too long. The £5bn being made available for the removal of unsafe cladding on high-rise buildings should bring comfort to the homeowners trapped in unsellable properties who have desperate need for help; although the future seems less clear for people with properties below the 18-metre threshold. Proposals to invest in the digitisation of the planning system is also a good thing, although this is a measure unlikely to play a significant role in the much talked about planning reform, which has still failed to deliver change on the ground."
Below, we have outlined some of the key measures from the budget that may affect you. The full budget document created by the Government can be accessed here.
#1 Relaxed taxation on real estate investment vehicles
The Government will be introducing a new tax regime for qualifying asset holding companies and relaxing some of the rules relating to the taxation of real estate investment vehicles. The measures will be included in the upcoming Finance Bill.
#2 Business rate relief
The Government is committed to providing £7bn of support for business over the next five years. This includes a 50% cut in business rates, up to a maximum of £110,000, for retail, hospitality and leisure properties and a 100% improvement relief for business rates (taking effect in 2023).
#3 £5bn for cladding improvements
The Government is going to make £5bn available for the removal of unsafe cladding on buildings over 18 metres high. This will be partly funded by a new Residential Property Developer Tax (RPDT) which will apply from 1 April 2022. The Chancellor confirmed that the RPDT will be charged at 4% and on profits exceeding £25million per year.
#4 £1.8bn to unlock brownfield land for development
The Government is going to invest an extra £1.8bn into the housing fund, enough to bring 1,500 hectares of brownfield land into use and the delivery of 160,000 homes. This includes £300m in locally led grant funding which will be distributed to combined authorities and councils to unlock smaller brownfield sites for housing and community improvement. The remaining £1.5bn is earmarked for regenerating under-used land and delivering transport links and community facilities.
#5 £65million to improve the planning regime
The main focus here is the development of a new digital system to ensure more certainty and better outcomes for the environment, growth and quality of design. This follows the recent announcement that 13 council’s have been awarded funding to pilot ‘innovative’ digital consultation tools.
ABOUT DJB:
DJB is a national law firm that specialises entirely in real estate. The firm has offices in London, Manchester and Birmingham ensuring truly national coverage. The firm is renowned for its high quality legal work and service.
We only recruit experienced lawyers with excellent calibre. As a result, our legal team of around 50 lawyers have an average post-qualification experience that exceeds 20 years. Most have joined us from other City firms, in-house departments and/or senior roles. Our lawyers have advised some of the UK’s most significant land owners including Barclays Bank, HSBC, Credit Suisse, Rolls Royce, The Royal Parks, The Cabinet Office and The Crown Estate. This focus on quality only has led to a 50% male and female Partner rate.
All of our clients are provided with a dedicated client care professional at no extra charge, which ensures that they receive the highest standard of service at all times.
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