The decision to leave the European Union has inevitably caused concern in markets, both here in the UK and across the world. However, the opportunities that Brexit provides will gradually come into focus. Mr Cameron's fruitless negotiations with the European Commission in 1996 showed just how out of touch they are with public feelings, not only in the UK but across much of the continent. Now, as we set out to establish our own path, we look forward to less regulation, a much improved (restored) democratic process. No unelected Commission to dictate policies, no European Court of Justice to rule above our own courts. UK Business taxes are low and the government has a 5 year mandate (with the support of the DUP). We expect to see UK economic growth maintained in the year ahead.
Outside the EU, we shall have the ability to trade across the entire world and source cheaper supplies and enjoy the many trading and business benefits that will emerge. The EU will meanwhile struggle on for a while yet with its economic problems and a disfunctional currency causing major difficulties for those locked into the Euro.
Housing Policy and Downsizing: A main objective of government in stimulating the economy is housebuilding which is now running ar around 170,000 new homes a year compared with the target of 240,000. The Communities Minister has stated that the government house building programme will "breathe new life back into High Streets and abandoned shopping centres". There will be a "de facto" presumption in favour of building on brownfield land in planning rules. We can hope that developers will now be able to look forward to the planning process being far less stressful and unpredictable. Certainly planning barriers must be eased and development encouraged. An area of particular neglect is the building of suitable good quality homes to suit the needs of the increasing numbers of the "baby boomer" generation who are now into their 60's and 70's. and wanting to downsize. These properties are in short supply. A stamp duty incentive to downsizing would also have the added benefit of freeing up larger homes for the following generations.
Stamp Duty and transaction volumes: This tax imposition remains at punishing levels and deters house buying and the mobility of the population when considering relocation for work and other purposes. It is in fact a brake on economic activity. We continue to hope that the government will recognise and act upon this.