Infrastructure spending and levelling up!
Well there was some negative news in the Chancellors financial statement this week – but nothing we weren’t expecting in all honesty but what was encouraging was the continued commitment to both infrastructure and employment as these are both areas that help boost the property market.
Sunak seems determined to level up the north south divide on prices and has committed large amounts of money to ‘the north’ in particular he wants a bank established in the north to help distribute the new ‘leveling up’ fund of £4 billion. This fund will make a huge difference to local projects such as by passes and local regeneration and so as investors we need to watch how and where that is distributed carefully as it will no doubt result in property prices being stronger. This fund will impact prices locally and overall the chancellor has also committed £2.2 billion for schools including new buildings, £2 billion for rail subsidies and £3 billion additional funds for local authorities. All this additional spending will make areas more attractive and help sustain demand for housing. Also the focus on jobs is a great one as when people are settled in employment they buy houses which again drives demand. It is odd to bring out such positive news from what was overall a negative announcement but the property market has continued to grow during 2020 and this latest financial news suggest that prices will continue to hold strong.
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