Budget 2015: North Sea oil tax breaks and plans to help savers could benefit the property market
The 2015 budget was generally an optimistic and helpful budget, showing confidence in the economy – which is good for the property market as a whole.
Many of the measures made will help to improve household budgets, such as greater opportunities for pensioners, the change to personal tax allowances and the cancellation of the fuel duty increase.
One main point from the budget, which will be useful for first time buyers and those looking to get a foot on the property ladder, is the launch of the Help to Buy ISA.
Aimed to tackle the dual problems of low interest rates when first time buyers build up their savings, and the high deposits required by the banks, the Help to Buy ISA will see the government provide a 25 per cent "top up" on what people save.
A 10 per cent deposit on the average first home costs £15,000, so if you put in up to £12,000, the government will put in up to £3,000 more.
Overall, considering how bad the economy was five years ago, the budget delivered by George Osborne seemed hopeful.
It provided four initiatives to the North Sea oil industry which will, hopefully, help manage the current situation.
These benefits will see the introduction of a tax allowance from April 2015, as well as Supplementary Charges being cut from 30 per cent to 20 per cent backdated to the start of January.
The government also revealed that it will invest in new seismic surveys in under-explored areas of the UK Continental Shelf, and that Petroleum Revenue Tax will be cut from 50 per cent to 35 per cent to support continued production in older fields – all moves that will hopefully have a beneficial effect on the industry.
Turning the focus specifically on the North East of Scotland, Osborne mentioned that negotiations will open on a city deal with Aberdeen. A similar deal worth £1.13billion was launched with Glasgow in 2014, with the money used to fund major infrastructure projects and drive innovation. If this goes ahead, it could provide a good opportunity for Aberdeen, and the property market within.
Despite being a pre-election budget, the overall outcome is positive, with many indicators that the economy is pointing in the right direction.
That can only be good news for the property market, and for the public as a whole.