Despite some positive reaction to the Chancellor of the Exchequer’s Autumn Statement, the consensus view of business leaders contacted by FM Magazine points to the property and construction sectors being overlooked.

David Hannah, Group Chairman of Cornerstone Tax, comments: “The Chancellor needed to use this opportunity to provide liquidity support to the construction industry to enable them to build speculatively and increase the housing stock more rapidly in this country. The decision to commit an additional £110m to deliver nutrient mitigation schemes to unlock 40,000 new homes in cities including London, Leeds and Cambridge is positive news. Earmarking £32m to address the planning backlog and beginning a consultation to allow any house to be converted into two flats marks an important step in freeing up the rental sector’s supply problem, potentially easing the strain felt by both landlords and tenants. 

“At another level the crisis in the private rental sector, could have been eased by removing the second home surcharge from bona fide private rental sector investors giving them a reduction in their acquisition costs and also reinstating full relief for mortgage interest payments in common with other businesses that have to borrow money to provide their services. 

“This double measure would have both reduced the costs of purchase, whilst allowing landlords to freeze, or even potentially cut, rents which have had to have both these penal measures “costed in” over the last few years. It would also stimulate purchases in the market at a time when owner occupiers are unable to purchase because of affordability issues.  

“The above would have provided a robust solution to providing homes, stimulating the property market at the lower end and restoring what has been a politically motivated but economically disastrous strategy from a government that, as little as 14 years ago, was begging the private rental sector for help during the crash.”

Graham Harle, CEO of Gleeds Worldwide, says: “This was an autumn statement by a government that appears to have little insight into the challenges faced by those working in property and construction, having shuffled 16 housing ministers in 13 years and just cancelled HS2. Of the measures announced, full expensing is to be welcomed but is only helpful if you have projects requiring you to buy plant and machinery. It doesn’t help firms struggling to make a profit or investing in people. It’s all jam tomorrow and while planning reforms sound appealing they take time to implement and may not be supported by any future government. Reducing business rates is helpful for a struggling retail sector and abolition of aspects of national insurance for self-employed tradespeople looks good but is worth little more than a few hundred pounds for the average plumber or electrician. 

“Where was the VAT relief on the greening of housing stock when over 31m people live in buildings that meet sub-standard EPC ratings and £50m to support apprenticeships is meagre. We were promised 110 measures to help industry but in fact there was little there to inspire confidence and stimulate investment.“

Building Cost Information Service (BCIS) Chief Economist, Dr David Crosthwaite, says: “In light of the OBR’s central forecast being downgraded, the Autumn Statement was really quite underwhelming for the construction industry, which has been crying out for some clarity, commitment and consistency in policies.

“Crucially, the already delayed National Infrastructure and Construction Pipeline is still nowhere to be seen, with the government saying it will publish a National Infrastructure Strategy next year.

“Investment in infrastructure, and removing barriers to private sector investment, is hugely important to driving economic growth. With the Autumn Statement, construction firms operating in an uncertain market have simply had that uncertainty prolonged yet again.

“We welcome full expensing of plant and machinery becoming permanent, for those firms who qualify. Having the ability to plan capital investment more effectively will be a huge benefit for firms looking to invest now and in the future, and maybe even a lifeline for some.

“For house builders, the promise of more streamlined planning processes and investment in new schemes may be welcomed, but we can’t forget that the significant slowdown in the housing market has been primarily caused by high interest rates creating a lack of demand. The housing sector would benefit more from tangible growth in the economy, which could in part have been boosted now by transparency around and commitment to infrastructure plans.

“Other measures, which will be welcomed by the industry, include a slice of a £50 million investment pot for engineering apprenticeships, but this doesn’t address a much wider skills gap we have across construction. The abolition of class 2 NI contributions for the self-employed, a growing demographic in our industry, is a saving of just £3.45 a week, and so a drop in the ocean considering the considerable costs construction trades have faced and continue to face.

“As BCIS recently launched the Built Environment Carbon Database, to unite the industry in making the measurement and reporting of whole life carbon assessments consistent, and as we approach COP28 next week, it’s hugely disappointing that the government hasn’t addressed the built environment and other sectors’ significant contribution to carbon emissions. Ambitions to reach net zero continue to be hampered by a lack of mandate for reporting from government level.”

Jatin Ondhia, CEO of Shojin, says: “Housing could not be overlooked today, not after Labour had made such a point of championing housebuilding as a key part of its election campaign. Hunt struck some positive notes, such as plans to make it easier for councils to fast-track applications for infrastructure projects, and potentially making it easier for houses to be converted into flats.

“But overall, this was a lacklustre statement for the property sector, with little of substance to excite those building, buying and investing in UK real estate. In the longer-term, at least, I welcome the decision to adopt the recommendations from Lord Harrington’s foreign direct investment. We must ensure the UK remains a hub for global investments, so any action to incentivise and remove friction from international investors seeking out opportunities in Britain is a step in the right direction, and the real estate sector could be a major beneficiary.”

Paresh Raja, CEO of Market Financial Solutions, comments: “You cannot begrudge the Chancellor’s focus on supporting businesses and consumers with tax reforms, but from the perspective of the property market, it was a somewhat uninspired and unimaginative statement.

“Speeding up the planning process and potentially making it simpler to convert houses into flats will be welcomed by some landlords, investors and developers, but more detail is required. Meanwhile, a more drastic overhaul of the planning system seems to have been abandoned, which feels like an important oversight.

“The lack of meaningful property-related announcements is disappointing, given there had been rumours of stamp duty cuts over the weekend. Today was a real opportunity to breathe life into the market and help catalyse growth at a time when economic markets are gradually improving, but that opportunity was missed.”

Roger Mortlock, Chief Executive of CPRE – the countryside charity, says: “People are crying out for genuinely affordable and social rented homes, both of which are in desperately short supply in all parts of the country. This morning, the government announced an extension to the mortgage guarantee scheme but nothing about investing in the kinds of housing that will help to fix our hidden rural housing crisis.  

“The government must act now to ensure there is a supply of the homes people need. If it doesn’t, the future of our countryside communities will be at stake.”

Of an announcement by the Chancellor that Stamp Duty rebates wlll be offered to make homes more energy efficient, Mortlock says: “We agree with the government that people’s homes need to be more energy efficient, for the sake of both the planet and people’s pockets. But why is there still no requirement for new houses and other buildings to include solar panels? The proposed stamp duty rebates are a drop in the ocean when what we need is a rooftop solar revolution. Only by making huge changes to the way we generate our electricity will we meet our zero obligations and protect the countryside for generations to come.   

“New homes should set the standard for energy efficiency. To turn this into a reality, the government must be bold and make rooftop solar panels compulsory in all new developments, not fiddle around with things like stamp duty.”

Mortlock also questions the announcement of individual payments to people with new energy infrastructure built close to their property, adding: “Planning decisions should be in the wider public interest rather than just being about compensating people for loss of property values. Individual householder payments don’t make sense for rural communities. It would be far better for National Grid and others to invest in community energy schemes that make communities as a whole better able to adapt to climate change and move towards net zero. 

“The National Grid already works to bury existing or new pylons in protected landscapes, but that is because improving these landscapes is a benefit for the whole nation rather than just those who live near to where the undergrounding takes place.  

“When the will is there, we can protect our iconic landscapes and meet our nation’s energy needs.”