It’s been just over a fortnight since we welcomed in the dawn of a new political party into government and so perhaps time to ask ourselves, “what are the green shoots” coming from central government.
With a Labour majority having been predicted for some time, the commercial market had already priced in the change of government. Therefore little in the way of valuation changes have feel felt. That said it has felt of late that yields are starting to move in with the good news around inflation and interest rates feeding through. It might not have been enough to keep Mr Sunak in a role but it has helped people feel that little bit more positive…..
The residential market however could be set for some meaningful changes – some positive, some not so positive. The likes of social housing requirements are rumoured to move towards 50% alongside the removal of permitted development rights which could remove some easy wins for developers. This would seem to fly in the face of Labour’s pledge to “get Britain building again” albeit one would hope that the revisions to the planning policy framework, due to be released at breakneck speed by the end of July 24 may help counter that. It is suggested that Labour will reintroduce the mandatory 5 year land supply and make it easier to build on “grey-belt” land.
Labour’s pre-election manifesto was pretty sparse when it came to commercial property. However, with de minimis changes to taxes they will have to help grow the economy as a way of delivering those additional funding pledges. Against a background of continued disruption over the last handful of years I for one will be happy if we just had a period of stability and managed, moderate growth. For that the future looks bright as Labour have inherited an economy coming out of recession with inflation back on target and the relative stability that the UK now has to offer presents an increasingly attractive investment proposition for global investors.
In summary, the pre-election promises made so forcefully by Labour, including social housing, planning reform, promoting sustainability, will now have to manifest into meaningful action and results. Otherwise we’ll be here in another 5 years listening to the same rhetoric we recently (and thankfully) put to bed about failed promises and discontent….For now Opus Land are squarely on the acquisitions trail so please come to us with any ideas you may have.
