Following the Chancellor’s Spring Statement, property and mortgage CEOs call for tangible action and pro-active, forward-thinking strategy, if words are to be turned into positive results.
Much of the Chancellor’s Spring Statement speech as it related to the property market, involved repeating the Autumn Budget’s plans to encourage housebuilding, but the “get Britain building” rhetoric must now translate into tangible action, said Paresh Raja, CEO of Market Financial Solutions.
“Overturning outdated parts of government to improve efficiency has been a major focus for Labour since the election, and planning reform was raised again as a key part of this agenda,” he said. “However, investors and developers are unlikely to commit to new projects unless they see a strong and growing economy that provides long-term confidence and a return on their investment.
“The OBR forecasts were a blow in this regard, and the onus must now be on turning the corner to turbo-charge GDP growth.
“House prices are rising, inflation fell in February, and the base rate is expected to come down further this year. These are all positives, highlighting that the property market remains bouyant, and this is important given how significant the sector’s contribution to GDP is.
“In future statements and budgets, we need the Chancellor to focus more energy on supporting homebuyers and borrowers, which will further stimulate growth in the market.”
Tim Parkes, CEO of RAW Capital Partners, added that while government has “a keen focus on fixing legacy issues, both with the state of the economic and within the property sector, most notably where housebuilding is concerned… the UK also needs a more proactive and forward-thinking strategy to meaningfully encourage economic growth.
“Creating the right conditions for investment should therefore be the government’s top priority if it hopes to attract both domestic and international capital.
“This means not just stabilising the economy and filling the fiscal blackhole, but fostering an environment where businesses and investors feel confident to commit to the UK for the long term.
“But the government can’t do it all on its own, so specialist lenders have a key role to play in facilitating overseas investment into UK property and contributing to a growing economy.
“By offering a tailored approach to lending and bespoke financial products, they can help international investors navigate the market with greater confidence, while reinforcing the UK’s position as a prime destination for investment.”
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