George Osborne is listening. The UK Oil and Gas Industry, “ this vital industry “ according to The Chancellor, should view the budget as an important step in the right direction. The announcement of a single, simplified tax allowance ; PRT cut from 50% to 35% ; the supplementary charge cut from 30% to 20% and new seismic surveys to be paid for by the Government. The Wood Review from February 2014 challenged the industry and the Government to shape the future of the UK North Sea and it is very encouraging to see the response to date. Collaboration, greater efficiency and better regulation are all progressing and today’s budget continues the momentum. Aberdeen’s property markets will be encouraged by today’s news. The cyclical nature of the world’s oil and gas markets is nothing new for this area and the North East’s position as a global energy hub has been built up over 50 years, experiencing several corrections. Each time, we learn something new and prepare for the recovery, which will come as sure as night follows day. Aberdeen’s energy sector has got decades of high level activity left – we are confident that those who play the long game in the property market will continue to prosper, a view shared by our experienced clients.
The reality is that 2015 and 2016 will see Aberdeen’s property market returning to a more normal level of activity, following a period which was exceptional. This is a time where experience really comes to the fore – clients want to deal with teams who have been through previous cycles. Comparing current transaction levels to 2012-2014 is not realistic – deals are still happening in all sectors, everybody is planning for the future and we are fortunate to live and work in an area which is home to one of the world’s biggest industries.