Commercial property growth required in Chancellor’s Budget
Published on
2011-03-15T00:00:00
The Government's latest Budget is due for release on March
23rd and Chancellor George Osborne is being called upon
to focus on enhancing commercial property growth by one
organisation.
The Royal Institution of Chartered Surveyors (RICS) is adamant
that the country's economic recovery would be underpinned by the
Budget's outline for additional support to the commercial property
and housing sectors.
The level of house building and commercial property building is
extremely low across the UK, comparative to previous years
according to Mark Goodwin, director of external affairs at
RICS.
"This Budget provides the Government with a chance to encourage
growth and innovation in construction and property, providing
much-needed jobs, tackling the housing shortage and ensuring that
businesses have a continuing supply of high quality premises."
One option for the Chancellor would be to reinstate a rate
relief for empty commercial properties to
let, with the opportunity to claim back half of all annual
business rates.
The medium-term outlook for commercial property is relatively
positive on the whole with the sector likely to enjoy a really
strong first quarter in 2011, particularly in Central London.
However, property outside the City continues to lag with a lack of
building and refurbishment in many regions across the country.
As a result the Government is being urged to add measures in its
Budget to boost growth in the housing and commercial property
sector. This includes cuts to VAT on home and office refurbishments
and amendments to the tax system making residential and commercial
property a more attractive proposition.