As the Spring Statement 2025 approaches, the property and mortgage industries are experiencing a sense of déjà vu. The same calls for reform that dominated discussions ahead of the Autumn Budget remain unanswered, and in some cases, have grown more urgent. Without decisive action, the government risks further stagnation in housing supply, affordability, and lending accessibility.
Breaking the boom-and-bust cycle
Nick Hale, CEO of Movera, highlights the persistent shortfalls in government policy:
“Looking ahead to the Spring Statement, it feels as though we’re experiencing a Groundhog Day effect. Everyone in the industry is calling for the same initiatives as they were before the Autumn Budget, if not stronger measures than before. And the reason is clear, the Autumn Budget ultimately did very little for the property market. Other than to decide not to extend the Stamp Duty threshold for first-time buyers which created another cliff-edge, placing unnecessary pressure on both buyers and the property industry, falling again into that boom-and-bust trap.
“Why ahead of such changes is the industry never consulted? We need a clear and open dialogue between policymakers and the businesses responsible for delivering these changes. Proper consultation and realistic timelines would prevent unnecessary disruption and better support first-time buyers. The Spring Statement is an opportunity for the government to show it has learned from past mistakes and to work with the industry—not against it.”
A housing market under pressure
The current landscape for housebuilding is bleak. Martyn Smith, managing director of Black & White Bridging, warns that the industry is far from meeting government targets: “The latest UK Construction PMI figures make for worrying reading. Overall construction activity has seen its steepest decline since May 2020, with residential building falling to 39.3 — its lowest level since early 2009 outside the pandemic. New orders are dropping at their fastest rate in nearly five years, job losses are accelerating, and costs are rising. These are not the signs of an industry primed to deliver 1.5 million new homes by the end of this parliament, as promised.
“Much of the political conversation has focused on planning reform and ‘blockers’ as the main obstacles to housebuilding. Yet official data suggests otherwise. The number of planning applications submitted in the year to September 2024 was the lowest since records began in 2005. Housebuilders, facing high material costs, a weak economy, and low consumer confidence, are simply not bringing forward new projects.”
Stamp duty changes - a looming disruption
With April 2025 fast approaching, concerns over Stamp Duty Land Tax (SDLT) changes are mounting. Matt Harrison, commercial director at finova Broker, stresses the risk of market instability:
“The planned reduction of the tax-free threshold from £250,000 to £125,000 for standard residential properties, and from £425,000 to £300,000 for first-time buyers, means a larger number of purchasers will face increased upfront costs.
“Historically, such adjustments have led to market volatility, with a surge in transactions preceding the implementation, followed by a slowdown. This pattern not only disrupts market stability but also places undue pressure on buyers and industry professionals alike.”
The forgotten borrowers
The lack of lending options for over-50s is another pressing issue, according to LiveMore CEO, Leon Diamond:
“We’re urging the Government to use this Spring Statement to take urgent action to support mid-to-later-life borrowers, many of whom struggle to access suitable mortgage products despite being financially responsible. Too often, those over 50 find themselves locked out of mainstream lending, forcing them to purchase homes in cash or remain in properties that no longer suit their needs.
“A key barrier to moving in later life is the cost of stamp duty, which discourages downsizing and prevents housing stock from circulating efficiently. We call on the Government to introduce targeted stamp duty reform, such as an exemption or reduction for older homeowners looking to downsize.”
Affordability and innovation
Melanie Spencer, sales and growth lead at Target Group, notes the importance of addressing affordability challenges:
“Increasing funding or incentives for brownfield developments feels like a missing piece of the puzzle, while question marks still remain on how the Government will fill these new homes without answering the clear affordability challenges in all areas of the market.”
Meanwhile, Richard Sexton, commercial director of surveying portal HouzeCheck, calls for investment in digital skills to drive efficiency in property valuation:
“We need more investment in digital skills – and more AI training, in particular. If these skills were more readily available, it would help the surveying profession leverage tech to improve efficiency and decision-making in residential valuation.”
A time for bold decisions
The Spring Statement 2025 presents a crucial opportunity for the government to reset its approach to housing policy. From tackling stamp duty inefficiencies and supporting first-time buyers to addressing housebuilding stagnation and improving affordability, meaningful change is needed.
If policymakers continue to delay bold decisions, they risk further instability and missed targets. Industry leaders have spoken – now it is time for the government to listen and act.
