Clearview National January 2015 - Issue 158 | Page 73

businessnews

Stamp Duty Reforms Should
Help Sustain Growth
A slowdown in the private housing market
compounded by continuing public sector weakness
has led to a decline in construction activity, according
to figures from industry analysts, Glenigan.
»»The Glenigan Index in
December, covered projects
starting on site during the three
months to November, and
showed they were down 5.5%
on last year - the first decline
recorded in 2014.
Private housing project starts
were 8% lower than a year ago,
suffering from a particularly
strong performance during the
same period in 2013. Property
transactions in the wider housing
market have also cooled in
recent months, with Nationwide
reporting that house prices fell
0.9% during the three months to
November.
Allan Wilén, Economics
Director at Glenigan, said:
“While this dip in project starts
is disappointing, the industry’s
forward pipeline points to
sustained output growth in 2015.

“Nevertheless, these figures
highlight the importance of
rising private sector confidence to
deliver increased activity levels in
the New Year.”

‘these figures
highlight the
importance of
rising private sector
confidence to
deliver increased
activity levels in
the New Year’
He added: “Private housing and
the commercial and industrial
sectors are forecast to be the main
engines for growth over the next
12 months.

“Mortgage availability
and affordability issues have
contributed to the current cooling
in the housing market. Rising real
household incomes and improved
consumer confidence will be prerequisites for delivering next year’s
forecast sector growth.”
However, commenting
on the Autumn Statement
announcement by the Chancellor
of the Exchequer, George
Osborne, Allan Wilén said:
“Stamp duty reform formed the
centre piece of the Chancellor’s
2014 Autumn Statement.
The change will remove long
standing pricing distortions in
the market caused by the tax and
offers a welcome reduction in
upfront costs for almost all house
purchasers.
“In particular the reforms will
narrow the deposit gap faced by

first time buyers and should help
re-invigorate the housing market
activity that has been cooling in
recent months. The Chancellor’s
move, combined with the
prospect of real rises in household
incomes, should help to sustain
the recent growth in new private
housing activity during 2015.
“Prime residential housing
is the one loser from the
Chancellor’s announcement,
which will add to the squeeze
on high end property prices in
central London that have already
been impacted by Labour’s
‘mansion tax’ plans.”

GGF MARKS GREAT PROGRESS IN SCOTLAND
»»The GGF raised its
profile at the Scottish
Parliament in Holyrood,
Edinburgh in the first week
in December with three jam
packed days that included a
GGF exhibition, meetings
with over 20 Members of the
Scottish Parliament (MSPs),
input at the Scottish Cross

Party Group Meeting on
Fuel Poverty in Traditional
Buildings and an exclusive
GGF Members lunch and tour
in the Garden Lobby of the
Parliament Buildings.
Alex Gray, Chairman of
GGF Scotland commented,
“It’s been an amazing week
and so important for the

profile of the GGF to be
raised in Scotland’s political
arena. Sincere thanks to
Margaret McCulloch MSP
and Nigel Don MSP who
helped facilitate the GGF’s
Exhibition and arranged the
lunch and tour of The Scottish
Parliament buildings for our
Members.”

Nigel Don MSP added, “It
was good to see an industry
authority like the GGF exhibit
at the Scottish Parliament.
They made an excellent job
of explaining why we must
make buildings more energy
efficient; it not only saves
money but also helps reduce
fuel poverty.”

www.clearview-uk.com
C L E A RV I E W-U K . C O M » J A N 2015 » 73