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News Release

London

Jones Lang LaSalle’s Autumn Statement preview comments


London, 2nd December 2013 – Commenting ahead of the Chancellor’s Autumn Statement on Thursday, Jon Neale, Head of UK Research at Jones Lang LaSalle said: “Demand for business space is growing, not just in London but in the other big cities such as Manchester, Birmingham and Edinburgh. The Government also needs to help support the flow of funding to developers so that they can start building the new workplaces that we are likely to need as the economy starts growing – the needs of growth companies may be quite different to those in the past. Development has been very restrained over recent years, in line with the economy, but it is clear that companies have needs but have been waiting for signs of improvement elsewhere. Now that is occurring, we could well see a sudden spike in demand. Without sufficient supply in place, that could lead to real problems for businesses that want to expand.”

Adam Challis, Head of Residential Research at Jones Lang LaSalle added: “The Government would be better-served by working with the grain of global demand for London residential property and reducing Capital Gains Tax liability for all new build investors. This would drive further investment from both overseas and domestic purchasers, expanding desperately needed housing supply and growing the tax take from Stamp Duty and ultimately Council Tax.

"Help to Buy has received some attention as a potential source of house price inflation. Our view is that this attention is largely misplaced, with the vast majority of UK housing markets having seen only moderate price improvements over the past four years. The programme provides vital demand support in these locations; the Bank of England's recent decision to end Funding for Lending for mortgage products only increases Help to Buy's importance. The Phase 1 equity support targeting new build properties is also fostering job creation in the construction sector and along supply chains. We see a continuance of Help to Buy as a prudent decision at this stage, with the spring housing market representing an important period to observe increasing listings from sellers.”