BNP Paribas Real Estate, part of the BNP Paribas Group, a global leader in financial services, today gave its reaction to the Autumn Budget 2024.
Rating
Emily Roberton, Head of Rating at BNP Paribas Real Estate, commented: “As ever with a budget announcement it is a case of “watch this space”. Very little is confirmed with many future changes only an intention at this point. Immediate winners are Retail, Hospitality & Leisure (RHL) sectors who will be relieved that RHL Relief is to continue from 1 April 2025, as the previous government’s policy was for this end on 31 March 2025, albeit the relief is to be reduced from 75% to 40% and the £110,000 liability cap will remain. Immediate losers are private schools who will lose their Charitable Relief from 1 April 2025, worth an 80% discount. The Labour Government clearly plans to protect the high street, which we welcome, however the intention is that this will be ‘sustainably’ funded by properties with RVs greater than £500,000 from 2026 onward – how this will work and its impact on economic growth is yet to be seen.
“Revaluation 2026 may put the cat amongst pigeons!”
Affordable Housing
James Barrett, Head of Affordable Housing at BNP Paribas Real Estate commented: “The boost to the Affordable Homes Programme is a welcome relief, especially for registered providers reliant on continuous market engagement. However, it’s a temporary measure. The sector’s real need lies in clarity for post-2026 funding—details we won’t see until the Spring spending review. Only with a well-funded, new programme can we realistically ramp up social rent delivery to meet demand.
“A ten-year social rent settlement is essential to allow providers of affordable housing the stability to plan effectively and invest sustainably. The five-year settlement announced doesn’t go far enough to provide the foundation this sector requires for real growth.
“Finally, proposed Right to Buy reforms will help curb the severe depletion of social homes that has plagued the sector for years. Increasing the cost of purchasing a council house and giving local authorities the right to retain receipts from the sale from social housing will help ensure that affordable housing stock can be safeguarded moving forward.”
Development
Bruno Jaczkowski, Head of London Development at BNP Paribas Real Estate commented: “The government’s focus on streamlining planning is encouraging for developers aiming to meet London’s housing demands. However, in the absence of any meaningful support for private sales, it makes it difficult for developers to focus on the green agenda across London. Whilst easing regulatory burdens is a positive step, the capital’s development landscape still faces significant challenges. For true impact, we need clear incentives and support for sustainable land use, particularly around energy-efficient builds.
“With ESG targets growing stricter, developers are facing more pressure to deliver projects that meet both market demand and environmental goals. Additional support for green building materials and renewable infrastructure would allow London to set the standard in sustainable development, making it easier to bring much-needed projects to fruition across the city.”
Planning
Kevin Hunt, Senior Director, Development & Planning at BNP Paribas Real Estate commented: “The government’s focus on planning reform is a positive signal for the real estate sector, especially with commitments aimed at streamlining development processes and supporting essential green infrastructure projects. However, true progress will depend on how quickly these changes are implemented at a practical level. A more efficient, transparent planning system is essential for accelerating sustainable development and meeting the UK’s ambitious housing and infrastructure targets.
Tom Stanley, Head of Development & Planning at BNP Paribas Real Estate commented: “For developers and investors, clarity and consistency are key. We’re looking forward to seeing how these planning initiatives translate into real-world impact, facilitating sustainable, responsible growth across communities.”
ESG
Donna Rourke, Head of ESG & Sustainability at BNP Paribas Real Estate commented: “Today's budget showed some welcome strides towards incorporating net zero into the UK’s future investment strategy, however, it generated some interesting questions. The chancellor set out a plan to invest in 11 green hydrogen plants, the most ambitious commercial scheme of its kind. However, there was no guidance as to how the hydrogen produced will be used and our vehicles, homes and real estate are not set up to run on this fuel. Interestingly, there was no mention of MEES throughout the speech or the document - given that this is the standard that buildings are currently rated against, this was a major omission. Does this mean that the regulation and it's sub-standard measurement system, the Energy Performance Certificate' are going to get a well-overdue and much-needed revamp? Also, missing was a focus on biodiversity or nature, pollution, waste and climate risk and resilience.”