The 2021 Budget: an ideal set of announcements for property investors

By Simon Lenney5th March 2021

I’ve had the pleasure of working within financial services for a number of decades and I’ve never known a Budget pass without there being praise and criticism in equal measure.

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Tax reliefs are welcomed whilst tax increases rarely go unnoticed; spending is increased in some areas but counterbalanced by measures of austerity in others.

However, it has now been 48 hours since the Chancellor took to the House of Commons and I am yet to recall a Budget that’s been as positive for any organisation and their clients that I’ve worked with than this week’s for CARLTON Bonds.

Many of the national headlines have focused on the stagnation in Income Tax, Capital Gains Tax and Inheritance Tax thresholds. And this is undoubtedly a cause for upset for many - there is now no increase scheduled for any of the three main taxes in the UK until at least 2026.

Yet when we move to the more regional headlines, the sheer scale of the impact of some of the other announcements in the Budget materialises.

  • 750 Treasury jobs are coming to Darlington as the government builds on its promise to move more of Central government away from London.

  • Teesside is being granted Freeport status - one of only eight new ports in the country - so to rapidly drive economic growth in and around the region.

  • The extension of the stamp duty holiday and the soon-to-be increased availability of 5% mortgages will support thousands upon thousands of homebuyers, further bolstering the already strong and in-demand housing market.

 As a region, these are the announcements that are going to make such a substantial difference it is in many ways difficult to comprehend. The lives of so many are going to be positively impacted by the above. It’s fascinating to consider how Tees Valley and the wider North East will grow over the coming months and years.

And it’s when you begin to understand the impact the Budget has had on the region that it becomes increasingly clear how positive it is for CARLTON Bonds, our investors and the strategic partners we work so closely with.

At CARLTON Bonds, we provide asset-backed Bonds; Bonds that target a generous return for investors through the provision of secured loans to Homes by Carlton, our strategic housebuilding partner.

As an experienced, respected and luxury homebuilder, Homes by Carlton’s focus is on the provision of high quality homes throughout the North East, with a particular focus on Tees Valley. With active developments in Middleton St George, Redmarshall and Thorpe Thewles - the latter of which was directly supported by CARLTON Bonds investors - Homes by Carlton are already playing a critical role in supplying the demand for homes.

But after this week’s Budget, said demand is only going to increase substantially.

Inward investment into anything - an organisation, an industry or a business - always creates jobs. It attracts people wanting to move to be part of the focus of the investment. It causes a powerful ripple effect; an effect where all in the surrounding area are positively affected.

With the investment into the area by way of the Treasury moving to Darlington and Teesside being granted Freeport status, these will naturally create jobs directly related to them. But they will also create jobs in the supply chain and in the local hospitality industries; in retail and in travel.

And crucially for CARLTON Bonds, in the housing sector.

An increase in jobs results in an increased demand for homes, from both people relocating to the area and those who are progressing through their career. We are fiercely proud of our position in the UK as homeowners; it’s often seen as a mark of success and for decades it has been a highlight as we move into our first home and subsequently onto larger and grander homes throughout our lifetime.

As such, our position at CARLTON Bonds has never been stronger. The demand for new homes in and around Teesside is already high, but that’s only going to increase exponentially as we begin to see the ripple effect take hold.

What is vital to understand is that whilst demand in general will increase, so will the demands of the homebuyer. This is not simply a process of building more homes wherever possible - the right homes are needed in the right locations; homes that will fulfil the needs of professional couples and growing families alike. A rich mix of housing across a spectrum, focused on an array of tenures, will become even more apparent.

Homes by Carlton’s focus on just this - building the right homes in the right locations - strengthens their position in the market. Already their three live sites are perfectly positioned. Middleton St George is just five miles from the centre of Darlington, whilst Thorpe Thewles and Redmarshall are both less than 15 minutes away from a number of sites covered within the Freeport status.

Regardless of the announcements in this week’s Budget, we are strong proponents of the region’s potential. Yet the inclusion of Teesside and the wider Tees Valley as a direct focus of some incredible investment over the coming weeks, months and years serves perfectly to show what many of us are already aware - that the North East makes for an ideal area in which to invest.

 

 

The CARLTON Bonds product is available exclusively to experienced investors who are classified as either sophisticated investors, high-net-worth individuals or professional investors and have the knowledge and experience to make their own investment decisions. Investments are high risk and illiquid, your capital is at risk and returns are not guaranteed. Bonds are not protected by the Financial Services Compensation Scheme (FSCS).