Whilst I (and others) were remarking that thanks to the recession and economic crisis, we are living in interesting times, the first quarter of 2010 has been full of surprises. First there was the weather, which brought snowfall levels not seen in the UK for many years and which brought the country to a grinding halt. Now it is Iceland''''s volcanic ash, shutting airports across Europe and leaving holidaymakers, businessmen and goods transporters frantically seeking alternative routes via road, land and sea. Whatever next?

Much current attention is focussed on the forthcoming General Election. So, if you have not yet sorted out a wish list for your prospective MP, now would be a good time as it is about the only time you can guarantee a clutch of politicians willing to listen and assure you they can deliver – although you may have to promise to vote for them in return! Whilst March''''s Budget already seems a long time ago, little of significance emerged for the commercial property sector, from a Budget typified, in my view, by a lot of smoke and mirrors, with various minor measures dressed up as good news for the pre-election climate, such as the proposed one year''''s relief from business rates. Unfortunately, a glance at the small print will show it is only applicable to properties with a 2010 Rateable Value of £6,000 or less and only to occupiers with one property and entitled to claim Small Business Rates Relief. The combination of these two qualifying conditions will ensure that the relief will cost the Government little in lost revenue, but any relief will be concentrated on the lower value locations of the industrial heartlands of the north, which is probably purely coincidental, with an election in the offing. Whilst mentioning the Budget, one has to be impressed with the power of Government spin, which somehow managed to persuade commentators that the temporary Stamp Duty Land Tax (SDLT) holiday proposed is good news (the small print says only applicable to first time buyers), whilst somehow glossing over the permanent 1% increase in SDLT for residential properties priced over £1m. No doubt that will encourage a few sales to go through at £999,500, where SDLT will be £33,980, whereas for an extra £500 on the price, the SDLT will leap by over £10,000 to £50,000, clearly illustrating the defects with the current tax charging system. How much of this will survive a change of Government, if that is what we''''ll have, remains to be seen. Based on the current opinion polls the glorious uncertainty of a hung Parliament seems to be increasing possibility, which could well cause consternation both in the financial and property markets later this year. However, in a year where surprises seem to be the norm, who would care to predict the result with any certainty? Perhaps all this drifting volcanic ash has clouded my crystal ball?

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