A new survey carried out by tax and advisory firm Crowe Clark Whitehill has outlined some of the biggest barriers to British property businesses, and the results are pretty much as you might expect.
The majority of UK based property and construction companies believe that the biggest barrier to growth is the current tax system. Stamp duty is very unfavourable and a potential stumbling block inhibiting growth in the UK. The survey also discovered that the government’s policies are not necessarily conducive for further growth in the industry and that Brexit is going to have a negative effect. This year’s general election was also damaging, resulting in a loss of confidence which needs to be restored before Brexit comes into play in March 2019.
In order to do this, the industry believes that the construction and property sectors must be high on the government’s priority lists this coming year. Around 75% of respondents to the survey highlighted the current green belt policies as a barrier to solving the housing crisis.
Stacy Eden, head of property and construction and Crowe Clark Whitehill said: ‘Some of the uncertainty that currently pervades the industry revolves around what deal the UK government eventually agrees with Brussels. For those in the construction industry, there remain real concerns over the potential barriers to free movement and this has the potential to increase labour costs and reduce the scope of operations due to the potential lack of skilled labour.’
Adding: ‘While recent stats show that stamp duty receipts have risen, this should not cloud the reality of what is going on in the market. The negative stamp duty levy remains a substantial burden and a drag on sector growth. Reducing this burden should be the government’s first step to encouraging much needed investment and liquidity in the market. Building on greenbelt land is possibly the only chance councils have for hitting a target of up to 300,000 new homes a year that is arguably needed to solve the housing crisis’.
But is building on the green belt the answer. Here in Norwich we have an unofficial green belt area but is the loss of green space a necessary sacrifice or are there other brown field sites that can be developed first? To find out more about the cause and solution of many of Norwich’s property conundrums, get in touch with our team at Agile. We’re always happy to talk.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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