Redbrook Commercial’s Post

On Wednesday, Jeremy Hunt announced the allocation of funds for building 8,000 new homes in East London and tax breaks for small businesses 📉 According to the report published moments after the Chancellor’s speech, the government is planning for thousands more homes to be built across Cambridge, London and Leeds in the near future 🏘️ Whether you’re in building, timber, plumbing or any other speciality, what do you think the next five years of merchanting will look like❓ Share your thoughts in the comments ⬇️ You can read the government’s report here: https://lnkd.in/df5KN4Ra #SpringStatement #Contruction #IndependentMerchants #IndependentBusiness

Here’s your daily round-up of the latest news and views from EG. 😠 Real estate professionals found Rachel Reeves’s Budget yesterday lacking, saying that if the government is to deliver on its 1.5m homes pledge it needs to go “much bolder and much further”. Melanie Leech, chief executive of the British Property Federation, said the government should have taken the opportunity to unlock the “billions of pounds” of investment in the build-to-rent sector, adding: “It is particularly disappointing that Rachel Reeves did not take the opportunity to reverse the previous government’s decision to abolish multiple dwellings relief announced in the spring.” Brendan Geraghty, chief executive of The Association for Rental Living, said: “The Budget provided the government with the perfect opportunity to demonstrate its commitment to ‘fixing the foundations’ by putting housing front and centre of its plans, yet it did not go far enough today… The government needs to smooth the road to institutional investment in BTR and implement the recommendations of the recently published Radix Big Tent Housing Commission Report.” 😡 Business rates reform also left much to be desired, with a promise to deliver a fairer business rates system labelled as “robbing Peter to pay Paul” and “absolute madness”. John Webber, head of business rates at Colliers, said it was a “dismal day” for the high street and set it up for “potential disaster”. “The chancellor’s announcements concerning business rates today were desperately disappointing,” said Webber. “Despite pre-election promises of business rates reform, nothing of significance was announced. There is to be no consultation, just a discussion document, and the measures announced hardly put a sticking plaster over the gaping wound, rather than bringing in any fundamental reform.” 🤔 More welcome were moves to boost capacity across local planning authorities in a bid to speed up development and improve what one real estate professional called a “hostile environment”. Extra funding for local authorities should enable an extra 300 planners to be recruited. Gateley Legal planning legal director Mark Iveson said the announcements gave a “resounding clear message”. “The government is intent on delivering growth and investment in infrastructure – including in homes, education and transport – fuelled by changes to the planning process,” said Iveson. “Hopefully we will see new officers at the right level, especially the higher level where the lack of strategic input, accountability and decision-making ability often leads to delay.” 🗞 There’s also news on the outlook for investment in London as we head towards the end of the year; a dive into green leases; and a podcast interview with our latest Dealmaker of the Month, Elise Evans at Lambert Smith Hampton. All this and more here. https://lnkd.in/e3UFUF6N

This budget leaves planning reform as the Government’s only major policy lever for driving private sector growth - there are no tax incentives, no new trade agreements, nothing; indeed, business is being burdened with even more costs. There is public sector investment (which will generate profits for some private sector providers) but this will dry up unless it stimulates further economic activity. Ultimately, the Government is putting all its growth eggs in the planning reform basket. I’m sure planning reform can unleash growth, but history tells us it is hugely contentious politically. The Government, and all those companies and organisations that rely on planning permissions, need to completely rethink their planning engagement strategies. The majority of people support housing and investment in new infrastructure, but you’d never know it from looking at our planning process. We need to start bringing those positive voices into the debate. Take a look at the Just Build Homes and Shared Voice feeds if you would like to know how.

Great and succinct budget summary here which I suspect will be of interest to many.

There’s lots to digest from yesterday’s #budget and what it means for the #ukhousing sector. If you’re looking for an excellent summary and insightful responses, have a read of this piece from Inside Housing and Stephen Delahunty. https://lnkd.in/eYsReaBQ

Want to know more about what the Autumn Budget 2024 means for the property market? - There was a clear switch in sentiment towards longer term objectives. The Chancellor was clear that all eyes should be on the next 10 years, not just the next 5. Leading into the Budget, business and consumer confidence indicators took at hit as the Chancellor made it clear the scale of the undertaking required. -And whilst the increased tax burden is clear (mainly met through employer National Insurance increases) there is much to focus on for longer term growth too. Alongside other large scale investments, £5 billion announced for housing. This is to increase the affordable housing fund and offer support and guarantees to boost housing supply (assisting small house builders). -Local government will also get to keep all the receipts from sale of right-to-buy social housing to allow them to reinvest and rebuild stock levels. - Cladding safety, has been an ongoing and serious concern for many years now; so £1bn of funding to help resolve these outstanding issues is very welcome. - The key tax change for housing was an increase in the stamp duty surcharge for second homes and buy-to-let investors. This will change with immediate effect (Thurs 31st Oct) rising from 3% to 5%. - Critical infra-structure announcements were also made: confirmation of the final HS2 link from Old Oak Common into Euston and also the 'Trans-Pennine' rail up grade. Source: Dataloft by PriceHubble, UK Government, Office for Budget Responsibility October 2024 \

With just a week left to the UK Autumn Budget 2024, what are your thoughts on how it might impact investors, landlords & owners? Is it all doom & gloom or are there still opportunities in the property market? https://lnkd.in/e7qaibch #budget2024 #propertyinvesting #propertysourcingexperts

What could we have seen from the budget? Is Golden Brick reform a possibility for the future? See mine and Camilla Bunce's thoughts on this #housebuilding #development #budget

Making changes to a project mid renovation is a budget killer. Ensure you have a proper plan in place before beginning and make sure you constantly track money in and out so that you can stay on top of your finances. You don't want to get to the end of the project and be short funds to finish. #contractorlife #realestateinvesting #renovation #realestateinvestor #budget #expenses #investmentproperty

My first budget experience on Mackay Regional Council has provided many learnings. It’s a huge disappointment that we finished up adopting a nett 8.2% increase in rates for the vast majority of ratepayers who pay their rates early by the combined effect of a 3.6% increase in the general rate but then reduced the early payment discount by 40% from 10% to 6%. The nett effect of those two measures combined is an 8.2% increase. Such an increase does nothing to curb the inflationary spiral locally by the time it hits the households of residents, renters and businesses with a higher cost of living and doing business here. I am sure we could have found a way to retain the discount that has been in vogue for decades if we tried a little harder. Whilst there are many good things about the budget, it did nothing to address the glaring anomaly in rates for those on the receiving end of rate rises greater than 60% for the second year running because we failed as a Council to even consider looking at a capping methodology in our rush to get this budget done by the end of June even though we have up to the end of July to complete a budget. Our failings in this budget fill me with determination to work harder with my colleagues to find a better way forward.