Budget 2015: RICS chief’ makes ‘party politics’ jibe after Osborne statement
THE policy chief of national surveyors’ organisation the RICS has taken a swipe at George Osborne’s Budget for being “more of a party political broadcast with insufficient focus on land and construction as drivers of growth”.
Head of policy of the Royal Institute of Chartered Surveyors Jeremy Blackburn also said the review of inheritance tax deeds of variation was a lacklustre measure and, combined with annuity cash releases, were likely to encourage baby boomers to downsize and bring new supply to the market.
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“Rebalancing the economy across the regions is vital and we welcome the focus on 20 housing zones outside the capital and eight proposed housing zones across the rest of the UK to create the much needed 45,000 new homes,” he said.
“We welcome the city deals, enterprise zones and business rate retention (in Greater Manchester) which will create opportunities for greater property investment across the regions.”
Meanwhile, Karen Campbell of business advisors Grant Thornton, warned there could be further house price rises as a result of the Chancellor’s efforts to help first time buyers.
She explained: “Initially there seemed to be little for the real estate industry although a welcome review of business rates was announced.
“Then there was the interesting announcement of boosting the savings culture in the UK, comprising the fully flexible ISA, the Help-2-Buy ISA and the changes to annuities.
“The Help-2-Buy ISA effectively provides a 25% top-up for first time buyers, and is undoubtedly welcome news to aspiring homeowners.
“The top-up is capped at £3,000 (for those saving £12,000) but the measure does not deal with the current housing shortage or the lack of supply of suitable housing.
“Our concern is therefore that the boost provided though the tax system could result in higher demand and ultimately lead to higher house prices.”
