UK Budget Sets Out Measures for Housing and High Streets
UK: The UK Budget has introduced measures covering housing, business rates, planning and energy costs. These include a new ISA product for first-time buyers, an increase in the Small Business Rate Relief threshold from GBP 12,000 (EUR 13,800) to GBP 18,000 (EUR 20,600), and a freeze on business rates for leisure, retail and hospitality businesses. The Government has also published its Hope on the High Street strategy to support local businesses, culture, connectivity and public spaces. Other measures include changes to planning and building regulations in England, the removal of biodiversity net gain requirements for brownfield developments of up to 1.5 hectares, and GBP 100 (EUR 114) in direct energy bill support for households in council tax bands A to D. A new Data Centre Covenant will also require developers to meet conditions relating to employment and local communities.
The Royal Institution of Chartered Surveyors (RICS) said the measures address several issues affecting the built environment, including housing viability and support for first-time buyers, while emphasising that changes to regulation should not compromise building safety or quality. RICS Chief Economist Simon Rubinsohn noted that the UK growth forecast for 2027 had been reduced to 1%, while the estimate for 2028 remained at 1.3%. The Office for Budget Responsibility also lowered its housebuilding projection by 190,000 homes over the forecast period compared with its March assessment. Although the Budget includes additional funding for affordable housing and changes intended to support development, RICS said higher borrowing costs and constraints on development viability would continue to affect the housing market.
Source: RICS
