The starting gun for this government has now gone off

Adam Challis, head of UK research at JLL, said:

"The starting gun for this government has now gone off. The 'Great Reset' Budget restores investment in housing and key infrastructure to drive productivity.

"Real estate will be excited by the £5bn for housing and the range of transport and green energy infrastructure investment.

"This budget has set out clear ambition from Government. To be successful, it will need private sector partnerships to align with that ambition to grow the UK economy."

Marcus Dixon, director of residential research at JLL, said:

“With the government having already announced plans to re-instate ambitious housing targets post-election we had hoped the budget would include some news on stimulus for demand. Yet incentives for home purchase and changes to stamp duty land tax (aside from the increase for additional properties) were conspicuous in their absence this time around.

“More positive news on the UK economy from the OBR and further interest rate cuts expected before the end of the year will likely support house price growth. We acknowledge increasing demand when supply remains low could challenge affordability further, but to convince developers that there will be a market for a higher number of new homes, we’ll need to think about both.”

Simon Peacock, head of UK regions at JLL, said:

“Social housing support and mandatory targets will be welcomed but, while the headline investment is strong, it’s less impactful when spread across the full country. It’s worth bearing in mind the housing squeeze is prevalent on all fronts and so we need to work on solutions for all forms of living – from market sale and build-to-rent apartments and homes through to later living and student accommodation. That will be key to addressing years of under supply.

“Infrastructure will continue to be a major driver of regional growth. Today’s announcements of higher investment in public transport – with the North and Midlands earmarked for an injection of cash already – will be welcomed by those keen to ensure no community is left behind. Green infrastructure and the opportunity to create clusters from clean energy will also provide an opportunity to deliver real levelling up.

“The Chancellor is right to spell out why planning reform is so crucial to free up the system and provide an easier route for the necessary retrofit and redevelopment of our cities. However, we should not ignore the next pipeline issue, the lack of construction skills and viability challenges. These will need to be addressed head on so the whole development pipeline is able to ‘get Britian building’".

Peter Fullam, head of rating UK regions, at JLL, said:

“The announcements surrounding business rates appear to provide more questions than answers, with even the supposed “positive” news on extending relief for retail, leisure and hospitality leading to higher bills for most in 2025/2026.

“In the absence of any other earlier reform, extending retail, leisure and hospitality relief for 2025/2026 was very necessary. However, we are disappointed the decision has been made to reduce the relief from 75% to 40%, particularly when other costs such as wages and employer National Insurance will increase, as this will put significant pressure on the sector.

“Equally, whilst it’s positive that the lower multiplier has been frozen at 49.9p, confirmation that the higher multiplier will increase to 55.5p is going to put further pressure on businesses.  In some areas, after supplements, the rate will be close to 60p which is simply too high.

“The launch of yet another business rates discussion paper is disappointing, as the real reform needed feels even further away.”