Edifice Invest discusses what Chancellor Philip Hammond’s Spring Budget really means for the UK and how investors can start taking advantage of the numerous investment opportunities available especially Birmingham property.
In the latest Budget, Philip Hammond unveiled upgraded projections for the economy, public finances and the end of austerity.
The Growth forecast for 2018 has been revised upwards from 1.4% to 1.5% whilst the forecast for 2019 and 2020 has remained unchanged at 1.3%. The Spring Budget also anticipates that inflation will fall from 3% to 2% by the end of the year with wage growth over the next five years.
It is anticipated that the amount the UK borrows will fall every financial year to £21.4bn in 2021-22 whilst debt as a share of GDP will fall from 85.6% currently to 78.3% in 2021-22.
In addition, UK Government Chancellor Philip Hammond announced that the West Midlands area would receive £350m to spend on housing development. The region wants to build 215,000 new homes by 2031
The Brexit divorce has been estimated at £37.1bn according to The Office for Budget Responsibility which is based on the ‘phase 1’ agreement which the UK agreed with member states last December.
Almost half of this bill relates to Britain’s commitments under the current EU budget that ends in December 2020.
So what does the Spring Budget mean for investors?
Well it is clear the UK Economy is at a turning point despite the doom and gloom of Brexit and Philip Hammond is confident the UK will continue to grow in years to come. Whilst Brexit will have an effect on Public Spending, the Government is confident in it’s approach.
Investors can take advantage of this by investing in popular growth areas such as Manchester and Birmingham. Over the last few years, these areas in particular have become a focus for many investors due to the Government’s renewed commitment to reduce the North/South divide.
Furthermore, investing in Northern property is not a new strategy for investors and many investors have received double the returns than other investments like bonds or shares which is fuelled by a regular rental income and capital appreciation.
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