Over 70% of UK based property and construction businesses view the tax system as unfavourable to the industry, according to a new survey.
Some 68% believe that stamp duty is the biggest tax barrier to business growth, with another 12% perceiving Capital Gains Tax as the biggest barrier.
The report, which provides a 12-month market outlook for the industry, saw an overwhelming expectation that residential new builds would be the London property most affected by the downturn in the market.
While the housing crisis continues, this prediction raises the potential for the development of brownfield sites, followed by council owned property to manage demand, according to the property and construction outlook report from audit, tax and advisory firm Crowe Clark Whitehill.
It also found that nearly half of respondents believe redevelopment of brown field sites will be the future of the London property market. This comes at a time when the UK government has said it will build more on brown field sites such as abandoned shopping centres, derelict rail stations and state owned land.
‘An overhaul of the tax system must be high on the government’s agenda. A reduction in the tax burden will fuel growth and encourage investment. Cuts to stamp duty should be the first step towards this, as we are already seeing the negative impacts of the recent raises on the property market,’ said Stacy Eden, head of property and construction at Crowe.
‘Simplification to the planning process to promote efficiency and initiatives to regulate the market are also required. Ensuring that brown field sites are available for development is crucial and there is clear demand for this within the industry,’ he pointed out.
‘Decisive action is needed as the lingering uncertainty from Brexit is hampering confidence. We need to ensure long term international competitive of our market, and that Brexit does not reduce investment into real estate,’ he added.