As 2017 draws to a close our managing partner James Bailey picks out the top five issues which have impacted the property market and have made this year a memorable one for the sector.
Continuing uncertainty surrounding Brexit made for a challenging 2017 in the region’s commercial and residential property markets.
Progress in striking an agreement between Britain and its former EU partners, has been painfully slow, impacting negatively on general business confidence.
Ensuring a workable “divorce” deal which addresses issues such as how to secure the free movement of skilled labour, is vital to our industry and I’m pleased to see progress in central government.
2. Business rates – winners and losers
The business rate revaluation, which came into force in April, was the biggest rate change high-street retailers have experienced in a generation. It produced winners and losers, depending on where their properties were located.
3. Residential stock shortage
Another ongoing challenge over the past 12 months was the shortage of residential property. Housing affordability showed no sign of improvement as first-time buyers struggled to get on the housing ladder.
4. Introduction of permission in principle
Helpfully, 2017 saw the introduction of permission in principle – a new way of securing planning permission granted on land allocated within the local and neighbourhood plans and on brownfield registers, with specific-site detail being agreed through technical details consent.
5. Tax squeezes on landlords
For buy-to-let landlords, a reduction on mortgage interest tax relief made 2017 less lucrative. As from April 2017 the relief available on buy-to-let mortgage interest was restricted from the current full relief on all tax bands, to maximum relief limited to the rate of basic income tax.
James added: “Whilst 2017 has been affected by political agendas and economic uncertainty, the commercial property market has continued to see transactions ongoing. I’m confident 2018 will see continued investment in Nottingham and the wider region.”