Ahead of the government’s Spring Statement next week, Peter Graham, Partner and Head of Real Estate and Construction for the North at RSM UK comments:

“Our latest Real Estate 360 report indicates an uptick in sentiment across real estate and construction businesses towards the sector’s future. Over two thirds (64%) of those surveyed reported feeling optimistic about market prospects. However, with over half (58%) of them also saying they don’t believe the government can meet its target to build 1.5m new homes by 2029, there is a risk that persistent headwinds to sector growth will hinder the industry’s ability to reach its full potential.

“There’s a clear appetite for tax reforms to help stimulate the real estate market and relieve a substantial pressure point for the sector. Our report found a third (33%) of respondents believe scrapping Stamp Duty would improve the viability of developments. While abolition is unlikely, a reintroduction of reliefs for first-time buyers and multiple dwellings would be a welcome step towards easing the tax burdens and supporting the sector’s long-term growth.

“Economic volatility, heightened tax restrictions and business rates are key barriers to investment in the sector, making government support crucial. Reforms such as increasing business rates relief for vacant properties would go a long way to alleviating financial pressures and promoting future investment.

“We are also yet to see the consultation for zero rated VAT for social housing come to fruition after this was announced in the Autumn Budget. This would be a welcome move which would improve the viability of social housing developments.

“The upcoming Spring Statement provides an opportunity for the government to provide much needed clarity and support for real estate development, improving overall transaction viability and boosting market activity.”

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