Liz Peace, chief executive of the British Property Federation, said:
"Housebuilders will welcome the fact that they have avoided a VAT rise, despite the LIbDem manifesto suggesting it could have been a possibility. Doing this would have been disastrous for the housing market. However, the VAT hike will put more pressure on retailers and with 12.6pc of shops standing empty, we could see more damage done to the high street. What this means for landlords of shops is that they will see further downward pressure on rents, which will mean less cash for new development and investment in deprived areas.”
CAPITAL GAINS TAX
Liz Peace, chief executive of the British Property Federation, said:
“Simplifying the CGT rise to 28pc by not tinkering with taper or indexation relief shows a welcome desire to keep things simple. Thankfully, the rate of CGT has not been brought into line with higher rate tax levels but this is something that many will not be happy about. Particularly, buy-to-let investors who have propped up the housing market over the last 20 years will suffer and this could hit the future supply of rented housing. However, on the whole there are positive signs here about the new government's tax philosophy.
PENSIONS
Peter Cosmetatos, British Property Federation director of finance policy, said:
“Linking pensions to earnings may be a good thing for the property industry as an investment asset class, and perhaps particularly for large-scale investment in housing, given the relationship between property income and earnings”
HOUSING BENEFIT
Liz Peace, chief executive of the British Property Federation, said:
“Cutting the housing benefits bill is long overdue and we have long said that housing payments need to again be made directly to landlords to avoid the money being taken by tenants and spent on other things. In introducing a cap on housing expenditure, it is vital that claimants in more expensive areas of the country are not sidelined and forced out of homes they have lived in for years. This would create more problems than it would solve, as it is vital that we do not end up creating more ghettos or forcing people to travel miles to work.”
For interview requests please email ateacher@bpf.org.uk
Andrew Teacher
07968 124545
Andrew Teacher
Head of media
British Property Federation
