Eastgate: Chancellor has chance to offer real solutions to property market troubles
Next week’s Budget offers Chancellor Rishi Sunak the chance to resolve some of the issues that currently plague the property market, John Eastgate, managing director of property finance at Shawbrook Bank, has said.
Eastgate pointed to the “inefficient planning system” and “an environment that discourages private investment” as two directions in which the Chancellor could cast an eye in his March 3 Budget.
Eastgate’s comments come after plans to extend the stamp duty holiday were rumoured in a number of national newspapers.
He said: “Reports of a potential extension to the holiday are welcomed but there will always been an end point which could leave the market unstuck.
“We are in now in the unfortunate position where further government intervention is required to avoid the damage that an immediate end to the holiday will bring.
“The Chancellor has the opportunity on Budget day to offer real-time solutions to the issues which currently trouble the property market; namely an inefficient planning system and an environment that discourages private investment.
“Rishi Sunak must adopt a more considered approach to housing for the long-term that will offer genuine stability while avoiding the need for more knee-jerk responses.”
Commenting on today’s Zoopla House Price Index – which can be read here – Eastgate added: “The truth is that house prices and levels of activity have been artificially inflated in recent months, by the rush to complete transactions before March 31.
“Therefore, any data looking at the first quarter won’t paint an accurate, or even realistic, picture of the current state of the market.”