Budget 2017: Property and Construction

The Budget announcement  on the whole was positive for the North East, with some great news for Redcar and our transport infrastructure. Initial reaction is that there was some good news for the Construction sector, but more could have been done.

Positive outcomes:

  • £44bn in overall government support for housing to meet target of building 300,000 new homes a year by the middle of the next decade
  • £400m to regenerate housing estates and £1.1bn to unlock strategic sites for development
  • £320m to be invested in former Redcar steelworks site

Uncertain headlines, where more detail is required to truly understand the impact:

  • £1.7bn city region transport fund, to be shared between six regions with elected mayors (and some of this may flow through the system and help the North East construction servicing companies)
  • Councils given powers to charge 100% council tax premium on empty properties
  • Compulsory purchase of land banked by developers for financial reasons
  • Review into delays in developments given planning permission being taken forward

One other item of note is that stamp duty changes will impact residential property prices…so perhaps more money to be spent on home improvements.

The 90% fall in Carrillion’s share price in the last year shows difficulties within the construction industry, as seen regionally with the loss of Owen Pugh in the last few months. Perhaps more could have been done to help the construction industry.

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