The impact of the Covid virus has affected all types of business throughout the United Kingdom and indeed the world at large. However, many businesses have steadily found means of picking up activity and developers are active on building sites. The government have brought in massive financial support for companies and individuals which is all aimed at sustaining the future of the nation and supporting an economic recovery as quickly as possible.
The UK and the European Union: We have now left the EU and the aim of the government to also part from the rules and regulations imposed by the European Union (EU) and European Court of Justice has been achieved with terms agreed for future trade. Many trade agreements with other national partners have also been put in place during the past year and more are in course.
Housing Policy and Downsizing: A main objective of government in stimulating the economy is housebuilding.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.
A stamp duty incentive to downsizing will also have had the added benefit of freeing up larger homes for the following generations. Indeed punitive levels of stamp duty have constantly gummed up the works throughout the housing market, slowing activity. It is very good news to see that the Chancellor put in place reductions to stamp duty as part of the Covid recovery package and we would urge that these are soon made permanent.
Stamp Duty and transaction volumes: The hope that the reduction in stamp duty would result in a marked increase in house transactions has been realised. The aim now must be to encourage further reductions in the tax and with greater house market activity this will bring in an actual increase in tax revenues. It will facilitate the essential movement of people to relocate to jobs and further stimulate the growth of the economy.