In case you hadn’t noticed – the race is on. The election has been called and the runners and riders are lined up. I can’t help but wonder if there is any enthusiasm to engage with the process.

Its a limited choice...
The last six months or so have submerged politicians to a level below the famous duck pond. Mired in the expenses scandal, they appear to be a cynical shower. And no party has really escaped the backlash.
However, in view of the current economic situation, this is probably the most important election for many years.
Looking within my world of commercial property, what has changed fundamentally in the last 13 years since the last time we had a ‘competitive’ election and how can the next Government help the property market?
One area has to be the amount of red tape and regulation. The rules and regulations now permeate every part of what I do – from having risk assessments before visiting a site to checking if there is an asbestos register to making sure there is an Energy Performance Certificate.
Some of the regulation is perfectly sensible – and where safety is concerned it shouldn’t be compromised. But some of the other regulation is simply a barrier to getting business done.
One field which has become increasingly complex is the planning system, which places a severe restriction on property development.
The Conservatives say they are planning major changes to the planning system with a view to making it less bureaucratic. Their current policy is for major amendments to the preparation of Local Development Frameworks together with the abolition of a whole tier of regional planning, national targets and the Infrastructure Planning Commission.
The planning system would then be based on the principal of ‘open source’ with a basic national framework but with the majority of input from local communities giving local people the power to engage in the planning process.
To ensure that ‘nimbyism’ does not take root, the Tories are also proposing to incentivise Local Authorities to promote development by allowing them to keep any Council Tax from new homes for a period of six years.
It will be interesting to see other plans as the manifestos unfold.
The other feature of the last 13 years has been the increase of stealth taxes including Stamp Duty Land Tax, landfill tax and empty property rates.
We need to quickly reverse the empty property rates legislation – before we have ‘constructively vandalised’ too many of our perfectly good buildings. These stand empty because of the market – not a lack of desire to let on the part of the owner. No Party has pledged this – they claim not to be able to afford to.
Stamp Duty is now a potential barrier to the market. Property needs to have liquidity and a 4% tax on transactions over £500,000 is a significant sum. A reduction could help the market.
Rumours of a VAT hike if the Tories come to power are not helpful – especially for our non-VAT registered clients. It impacts on fee costs and building works.
Of course, the real feature of the last few years has been the rise and fall in property values. Hard evidence is always difficult to find, but there are examples of falls in values of up to 50%. The property sector has been hit hard by the recession and we are not out of it yet. The inevitable cuts in public sector spending are likely to further impact on the property and construction sectors especially if unemployment increases as a consequence.
An important characteristic of a healthy property market is the availability of bank finance. Whilst it is obviously important that proper regulation of financial institutions is put in place to ensure that we do not have a repeat of the ‘credit crunch’, any control should be as light-fingered as possible as there is a danger of over-reaction, which could stifle the whole banking system.
Whatever else is needed out of the forthcoming election, a prerequisite is a firm mandate for one of the leading parties so that they can take the difficult decisions required on the economy as soon as possible. It is only in times of economic growth where rents are rising steadily that the property development market can flourish.
So it’s back to the race. Bookmakers are expecting a record £25m of bets on what is being called the tightest election for a generation – though that will still only be one tenth of the sum gambled on this year’s Grand National. Does this mean a complete apathy for politics? Probably, but if you don’t vote then you can hardly complain about the winner of the race.
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