FJP: Spending review may see more investors turn to bricks and mortar
With Chancellor Rishi Sunak’s spending review due to take place later today, UK and overseas property investment business FJP Investment has predicted that the announcement will fuel investors’ eagerness to put their money in bricks and mortar.
Jamie Johnson (pictured), CEO of FJP Investment, said: “With spending cuts and tax reforms on the horizon, investors will be retreating to assets that are secure, resilient and have the potential for long-term capital growth. This partly explains why the property market is alive with activity.”
Johnson added that the market is already being stimulated by government initiatives, including the stamp duty holiday, which expires in March 2021.
He said: “As a result, house prices have been rising at an impressive rate – a reflection of an asset high in demand and limited in supply. I expect this to remain the case well into 2021.
“Importantly, infrastructure spending remains a core policy commitment, with billions pledged for upgrades and the construction of new-build homes. The government knows that any attempt to bring about the UK’s post-pandemic recovery needs to include measures that promote investment into property and infrastructure. As well as being a key election pledge that Boris Johnson will be keen to honour, putting public funds into such developments will also promote economic growth and productivity.”