Unlike George Osborne’s Budget back in March, the Autumn Statement delivered by the new Chancellor Philip Hammond on 23 November contained little with direct consequences for real estate investors. There were no new announcements on stamp duty. On business rates, other than a simple reiteration that the government was committed to reducing the burden of the tax over the coming years, there was only a minor change to the transitional relief applied to introducing higher rates for properties that saw an increase since the last review (this provides a marginal benefit to London and some other property markets that have seen rents grow since 2008). Finally, a new ban on agents charging lettings fees to tenants is unlikely to have much, if any, impact on institutional investment into the residential sector. Other than these, the most significant relevant announcements relate to the potential boost to long-term sustainable growth through the new National Productivity Investment Fund, which over the next five years will add, on top of the spending already outlined in March’s Budget, an extra £23 billion of investment in infrastructure and to promote greater innovation – specifically investment into housing, transport, digital communications, and R&D.
Source : M&G Real Estate