Little relief for property markets in the Pre-Budget Report

The Pre-Budget Report (PBR) contained some good news for the commercial and residential property sectors but perhaps less than some might have been hoping for. The bottom line is that, to the extent that it provides some support for economic activity, today’s fiscal stimulus of £20bn, or roughly 1% of GDP, has to be positive for the property sector compared to the “do nothing” alternative. But we do not share the Chancellor’s optimism that the economy will be recovering by mid-2009.