The latest survey conducted by audit, tax and advisory firm Crowe Clark Whitehill has found that more than 70% of UK based property and construction companies view the tax system as unfavourable to the industry.
The report shows that 68% of respondents believe that Stamp Duty Land Tax is the biggest tax barrier to growing their businesses, while another 12% view Capital Gains Tax as the biggest barrier.
The report, which provides a 12 month market outlook for the industry, saw an overwhelming expectation that residential new builds would be the London property most affected by the market downturn.
While the housing crisis continues, this prediction raises the potential for the development of brownfield sites, followed by council owned property to manage demand.
In fact, almost half of those surveyed believe that the redevelopment of brownfield sites will be the future of the London property market.
Stacy Eden, head of property and construction at Crow said the findings show that an overhaul of the tax system must be high on the government’s agenda.
She believes that a reduction in the tax burden will fuel further growth and encourage more investment.
Eden commented: “Simplification to the planning process to promote efficiency and initiatives to regulate the market are also required. Ensuring that brownfield sites are available for development is crucial – and there is clear demand for this within the industry.
“Decisive action is needed as the lingering uncertainty from Brexit is hampering confidence. We need to ensure long-term international competitive of our market, and that Brexit does not reduce investment into real estate.”
Crowe Clark Whitehill is a national audit, tax and advisory company and the UK member of Crowe Horwath International, one of the biggest global professional service organisations with 171 independent member businesses operating from 671 offices throughout the world.