The Progressive Property Podcast BUDGET UPDATE: New Taxes, Investing & Economy Explained
Listen in to this bonus episode where Mark Homer, co-founder and owner of Progressive Property is joined by Shaz Nawaz, chartered accountant and labour councillor as they delve deep into the recently announced budget. They discuss their own views on what Rishi Sunak has announced and also how this will impact many of us in real terms.
KEY TAKEAWAYS
- Rishi Sunak has announced many things in this new budget, nothing that is particularly ground-breaking but quite a few things that will impact property investors and developers.
- Rishi stated he will be putting 24 billion into affordable housing which will be around 180 thousand new homes – but over what period is this over and will it actually have much of an impact on the housing crisis, house prices and rent? Probably not.
- Any government who are serious about tackling the housing crisis needs to move away from affordable homes and this term as they do not actually solve anything as they aren’t affordable for those who need them most.
- Any developers in blocks of flats will have to pay a 4% surcharge on corporation tax to help pay for the removal and replacement of dangerous cladding.
- Inflation is a hot topic around this budget announcement. It’s important to put this into perspective and understand what is driving this: businesses being shut during the pandemic, supply chain disruption but then high demand as we are going back to normal. This is basic economics and was always going to happen.
- Shaz has been quite disappointed with this budget announcement. Especially regarding the pressures currently on local government. People care about what is happening to them locally on a daily basis such as street cleaning, business rates and other local provisions: they have had their budgets cut by 80% in Shaz’ local city of Peterborough.
- There will be a 50% business rates discount/relief for those in the service industry which includes serviced accommodation.
- Shares of property developers are all up around 1% and large property landlords are also up. This is good news and shows that the market is confident at the moment, perhaps partly due to brownfield land being made available for residential property and changes to permitted development rights continue to help generate retail conversions.
- There has been talk about a wealth tax to replace inheritance tax. But Mark feels like this is unfair, but he does understand why we need tax. He believes in making a faster economy and generating tax from increased economic activity rather than having large public spending which we can’t afford.
BEST MOMENTS
“What is sold to be affordable really isn’t affordable to people who can’t afford these homes”
“it’s just simple economics, price rises equal inflation, this was always bound to happen”
“All politicians just want to deliver good news…some of these ideas or just old ideas”
“It’s always good to use those kind of sites as you aren’t going to upset people as you aren’t going to be tearing up the green belt”
VALUABLE RESOURCES
https://www.youtube.com/user/progressiveproperty https://www.progressiveproperty.co.uk/the-progressive-co-founders/
ABOUT THE HOST
Mark has bought, sold or has managed around 1,000 property units for himself, Rob, his family and his investors since 2003. He is a system and spreadsheet geek and has developed a complex, confidential deal analyser system of buying residential, commercial and multi-let properties.
CONTACT METHOD
Email: Markhomer@progressiveproperty.co.uk
LinkedIn: https://www.linkedin.com/in/markhomer1
Facebook: https://www.facebook.com/markprogressive
Twitter: https://twitter.com/markprogressive