We have mixed feelings about the 2021 Budget, specifically the governments latest strategy for the property sector. On the one hand, we are delighted to see the Exchequer offer a new business loan scheme offering 80pc government-guaranteed loans between £5k and £10m. However, risk must be commensurate with rate and as such, we would expect lenders to increase their appetite, support applications and not be greedy on the cost of those funds.

Furthermore, we are concerned about the increase in corporation tax by 6pts to 25% on profits in excess of £250k from 2023. This will hit many development schemes and if profits are not protected, this may erode further investment into new schemes and slow the ability of our developers to deliver more housing schemes. The super-deduction looks like an interesting proposal, however, it remains to be seen how effective it can be implemented for asset-backed investments.

Finally, the announcement of the 2021 Budget means we are broadly supportive of the extension to stamp duty and the 95pc mortgage offers which will benefit from a partial government guarantee. It will be interesting to track and follow the demand and supply dynamics on sub £600k properties with this new initiative.

We’ll keep you abreast of the latest developments, CBILS support and how you can implement the new business loan scheme later in the month. As ever, if you have any questions, please do not hesitate to contact the team.