More help for entrepreneurs, less red tape and a continuation of holidays for a number areas of taxation.
Those are top of the wish list for the Spring Budget from North East property agents covering sectors including residential housing, investment, commercial property, business parks and retail.
As a major employer, leading companies are also hoping to hear The Chancellor has plans to deliver more support to the property sector to ensure it can drive forward a successful recovery from the pandemic.
Neil Hart, group managing director at Bradley Hall Chartered Surveyors and Estate Agents, based in Newcastle and covering the whole region, said: “It is essential for the Budget to deliver more support for entrepreneurs and business leaders in order to allow them to grow their businesses and fill the jobs void which will inevitably be left post-furlough. Simply put, we need less red tape and much more incentive to create jobs and grow companies.
“The property sector is responsible for a range of employment opportunities and has a high rate of indirect and induced jobs which support our region’s economy. The industry should be prioritised and supported in order to continue making such a significant impact to our towns, cities and local communities.”
It has been mooted that the Stamp Duty Land Tax holiday could be extended to the end of June, The SDLT holiday is currently set to end on March 31 – and it has been estimated that up to 105,000 property deals could fall through if buyers are unable to complete before the existing deadline.
Research by Trussle and Legal & General Mortgage Club also suggests a ‘tapering off’ of the holiday could provide a fair alternative which could boost the economy by £28bn.
Richard Ponton, investment director and partner at Walton Robinson, agrees it would certainly would be welcomed.
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He said: “An extension to the SDLT holiday will be welcomed by selling agents. It will reduce the pressure on the current pipeline, hopefully meaning that vulnerable transactions go through and aborted deals are minimised – something that hits agents hard.
“There may be a flurry of activity immediately after the announcement, as sellers look to get the property listed quickly to give themselves the best chance of selling at a SDLT-free premium. More instructions mean more business for agents.
“Agents will have the chance to play a pivotal role in aligning expectations and this needs to be backed up by conveyancers.
“Some creative solutions to address the uncertainty could be considered, such as agreeing deals on the basis that SDLT is likely to be payable and split the benefit if it completes ahead of time.
“No one expected the delays we are experiencing – perhaps we should have anticipated this – but if the extension is confirmed, all parties need to be realistic and learn from the last eight months.”
Ian Angus, director at the Newcastle based retail property consultancy @retail, said a similar extension for business rates is an absolute must if firms are to return to the high street.
He said: “From speaking to retailers on a daily basis, we know that the Chancellor’s decision on whether or not to continue with 100% business rates relief, or at least offering further relief in some form, will dictate whether they pursue further acquisitions this year.
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“There was already a pre-Covid rates relief programme in place running to the of end March and as a minimum that should be extended to end in March 2022.
“The sad demise of many well-known high street retailers over recent years has accelerated during the last 12 months and as retail agents, we know there are many independent operators with exciting ideas for new concepts but who will only take the plunge if long term occupational costs fall meaningfully, allowing their investment decisions to be taken with certainty.”
Fellow @retail director Bob Fletcher added: “To facilitate the repurposing of town centre buildings to uses which are unlikely to generate a substantial capital value, the Chancellor should establish a fund to enable local authorities to purchase and redevelop these buildings, perhaps as some form of community ownership fund.”
Another closely-watched area of taxation in Mr Sharma’s announcement this week will be his plans for corporation tax. It has been suggested in some quarters that it is set to rise.
This, however, would be too soon according to the joint owners of Quorum Park in North Tyneside, Shelborn Asset Management.
Mark Rabinowitz, director at Shelborn, which owns a significant holding at the business park, said: “There has been a lot of speculation regarding an imminent rise in corporation tax to help repay the £300 billion the Chancellor has borrowed in the last 12 months.
“However, to start increasing the tax burden of companies now, when we are still very much in the midst of the pandemic, is premature in my view. In the months ahead, we need the private sector to have the freedom to help rebuild our economy which directly impacts employment figures but also levels of commercial investment in areas such as new technology, machinery and business space.”