UK’s financial report – OK, but could do better. Some good news at last for Property Developers.Make Text Bigger
A flurry of results and reviews about borrowing, the economy and tax that show the current state of the UK’s finances is pretty steady, if uninspiring, are now out.
Building society gross lending was down nearly 10% in October – at £1.96 billion compared with £2.17 billion in September.
Mortgages approvals were £1.76 billion compared to £1.91 billion in September.
The figures are in line with the trend for the past quarter.
Adrian Coles, the Building Societies’ Association (BSA) director-general, said: “Lending activity across the market has shown signs of weakening in recent months. Although lending by mutuals fell in October, gross lending remains similar to the average over the preceding three months. Reports of falling house prices and government spending cuts have lowered consumer confidence that has put further downward pressure on demand for mortgages.
“An encouraging trend in recent quarters, however, has been the growth in mortgage approvals at mutuals and this may lead to some recovery in mutuals’ market share over the next few months.”
The Bank of England also issued lending figures for October that confirmed mortgage lending and home loan approvals are performing at the same sluggish rate as they have shown in recent months – slipping back a small amount to figures returned in the summer.
Meanwhile, the Chancellor George Osborne revealed the economy is on track to meet performance targets a year early. He put out an autumn statement that takes the place of the axed pre-budget review that was generally released about this time of year.
Public sector net borrowing will fall from £148.5 billion this year to £18 billion in 2015-16 due to the raft of spending cuts.
For property developers, the Treasury has also released consultation papers for the reform of Corporation Tax (paid by companies on their profits and capital gains).
The notice confirms tax rates will fall to 20% for small companies and 24% for larger firms.
This is good news for property developers, who should consider incorporating for buy to sell projects, so they can protect their profits from high rates of personal tax.
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