The Royal Institute of Chartered Surveyors (Rics) has hailed the government’s decision to not cut down on capital spending beyond the March budget reductions. Rics had previously hinted that any more reductions in capital spending could arrest the growth of the construction industry and affect the economic resurgence negatively.
Greater business investment will also be promoted, thanks to the cuts in corporate tax rates in the next four years. This move will in turn boost the commercial market.
Mark Goodwin, Director of External Affairs, Rics, added that the moderate increase on CGT will aid the supply of development land and provide encouragement to new investors in the private rented sector.
In the meantime, the numbers published by Scottish Widows Investment Partnership point to the fact that the long-term outlook for the UK commercial property market will stay positive. It is forecasted that in five years, commercial and asset class will bring in returns worth 8.5 per cent per annum, surpassing the performance of bond and equity classes.
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