As we approach the Autumn Budget on the 30th October 2024, anticipation is building around potential changes that could impact various sectors, including commercial property.
While Prime Minister Sir Keir Starmer has hinted at a “painful” budget to address a £22bn deficit, it’s not all doom and gloom for commercial property investors, buyers, and renters. Here’s a look at the predictions and why there’s still plenty of reason for optimism in the market.
Key Predictions and Potential Impacts
1. Capital Gains Tax (CGT) Adjustments
While there is speculation about potential increases in capital gains tax (CGT) rates, these changes could create new opportunities. For example, property investors who are considering a long-term hold might find that now is a good time to enter the market before any changes take effect. Moreover, aligning CGT with income tax rates could simplify the tax landscape, making it easier to plan and execute property transactions.
2. Inheritance Tax (IHT) Reforms
Changes to inheritance tax are also on the cards, but savvy investors can use this as a chance to review and optimise their estate planning strategies. Adjusting portfolios and seeking professional advice can help minimise tax liabilities and ensure that investments continue to perform well, even if tax rates increase.
3. Potential Pension Tax Relief Changes
The government’s consideration of adjusting pension tax relief could prompt investors to explore alternative investment vehicles, such as commercial property. With the stability and potential for long-term gains that commercial property offers, it could become an increasingly attractive option for those looking to diversify their portfolios, especially if other tax-efficient options are adjusted.
4. Economic Sentiment and Business Growth
Despite potential changes, the UK’s economic fundamentals remain strong. Falling inflation and steady interest rates provide a stable backdrop for commercial property investment. Businesses are continuing to expand, and demand for quality commercial space is still robust. With the right guidance, investors can find excellent opportunities that align with their goals, regardless of the broader economic landscape.
Positive Outlook for Commercial Property
While changes in tax policy are often seen as a challenge, they can also drive market adjustments that benefit strategic investors. By staying informed and agile, buyers and renters of commercial properties can capitalise on new opportunities that arise.
For example, any potential slowdown in investment due to tax changes might lead to more competitive pricing in certain areas, making it a buyer’s market. Additionally, businesses seeking to lock in favourable lease terms before any economic shifts could find excellent deals on high-quality properties.
Why Now is Still a Great Time to Invest
Commercial property remains a resilient asset class with the potential for strong returns. The anticipated Budget changes could lead to a period of market adjustment, but for those prepared to act decisively, it could also be a time of opportunity. Key locations like Derby continue to thrive with their attractive investment prospects, driven by strong economic indicators and ongoing regional development projects.
Cameron Godfrey, Commercial Agency Surveyor at BB&J Commercial, commented, “Despite potential market adjustments due to the anticipated Budget changes, we see this as a period of opportunity for strategic investors. Derbyshire, in particular, continues to offer compelling investment prospects, supported by robust economic fundamentals and active regional development. Investors who are prepared to act swiftly can benefit from the resilience and strong return potential of commercial property in these key locations.”
How BB&J Commercial Can Help
Navigating the commercial property market during times of change doesn’t have to be daunting. At BB&J Commercial, our expert team is here to guide you through every step, providing the insights and advice needed to make informed decisions. Whether you’re buying, selling, or renting, we’re committed to helping you achieve your commercial property goals.
Get in Touch:
To learn more about how the Autumn Budget might affect your plans and how we can help you navigate these changes, contact BB&J Commercial today.
📧 Email: commercial@bbandj.co.uk
📞 Phone: 01332 292825
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