It is clear that Jeremy Hunt’s recent spring Budget favoured commercial property investors along with those who specialise in serviced accommodation. 

For example, the lifetime limit on pension contributions has been removed, which is incredible news for investors who use private pensions, Self- Invested Personal Pensions and the Small Self-Administered Scheme, with the previous limit sitting at £1.073m.

Savvy property investors will use this to rapidly expand the size of their pension pot.

I am a member of our SSAS, so it is wonderful to know that there is now no limit to the financial legacy I can leave my loved ones.

Another key Budget benefit for investors in commercial property and serviced accommodation is the acceleration of the rate at which they can draw down tax-free income. Investors can earn faster and more easily by using HMRC incentives, allowing earnings of £1m per person per year, tax free.

The strict cap on annual tax-free pension contributions has also been lifted by a massive 50%, increasing from £40,000 per year to £60,000 per year.

The government also predicted that over the next 12 months interest rates will significantly fall, with the Office for Budget Responsibility forecasting inflation at 2.9% by December 2023. This will lead to lower mortgage interest rates in the coming months.

The chancellor also revealed an extension of the existing ‘levelling-up’ project, targeting 12 key UK regions to benefit from £80m in funding each over the next five years. I predict investors will look to make purchases in these regions and look beyond London for new investment areas.

Paul Smith, founder, Redmayne Smith