Yesterday´s budget statement delivered an up - beat message for the property sector according to Jones Lang LaSalle, the globally integrated real estate services firm. The Chancellor, Gordon Brown, touched on three key issues that were well received by real estate professionals at Jones Lang LaSalle:
* Launch of REIT (Real Estate Investment Trust) consultation document - providing the opportunity for industry discussion regarding the creation of a liquid, tradable and tax transparent property investment vehicle for the UK. PIFs (Property Investment Funds) in the UK will compare with the US Real Estate Investment Trust (REIT).
Andrew Hynard, Head of UK Captial Markets, Jones Lang LaSalle commented:
'In comparison to previous budgets there is nothing negative for the property world against a background of relative growth in the UK. We welcome the apparent open mindedness of the REITs consultation document, which provides scope for industry discussion and should eventually allow more people to
have the opportunity to invest in commercial property in the future.'
* Endorsement of the Lyon´s Report, which outlines plans for the relocation of 20,000 civil service jobs from London to locations across the country.
Chris Hiatt, Head of National Offices, Jones Lang LaSalle said:
'Traditionally the property industry has been somewhat complacent of the market implications of government decentralisation from London and the South East. The publication of the Lyons Report on Monday, together with the Chancellor´s statement today, illustrates the Government´s commitment to implementing a significant dispersal programme in order to give a much needed lift to local economies around the UK. Whilst we don´t expect this to encourage speculative development immediately, it is likely to have a positive impact on vacancy rates in regional cities.'
* Stamp Duty frozen - despite speculation to the contrary in recent weeks, the freeze on Stamp Duty was also warmly welcomed by both commercial and residential property players.
Source: Jones Lang LaSalle