Today's Spring Statement was light on new measures for the mortgage and housing markets, with no reprieve for buyers trying to beat this week's stamp duty deadline and no new mortgage scheme for first-time buyers.
Chancellor Rachel Reeves confirmed a new £2 billion package of new grant funding to deliver up to 18,000 new social and affordable homes, helping the government to meet its 1.5 million housebuilding target.
Reeves also claimed that Labour's planning reforms will permanently increase GDP by 0.2% by 2029/30 and increase GDP by 0.4% within 10 years.
She said this is “the biggest positive growth impact that the OBR have ever reflected in their forecast”, adding that it puts the government “within touching distance” of its target of building 1.5m new homes over this parliament.
Industry experts share their thoughts on today's speech and what it means for the property and mortgage markets.
Paresh Raja, CEO of Market Financial Solutions: “Overturning outdated parts of government to improve efficiency has been a major focus for Labour since the election, and planning reform was raised again as a key part of this agenda. However, the "get Britain building" rhetoric must now translate into tangible action – bringing in new construction workers is a positive step, as the Chancellor had already announced three days ago, but much of today's speech involved repeating the Autumn Budget's plans to encourage housebuilding.
“Reforming the planning system is obviously important. However, investors and developers are unlikely to commit to new projects unless they see a strong and growing economy that provides long-term confidence and a return on their investment. The OBR forecasts were a blow in this regard, and the onus must now be on turning the corner to turbo-charge GDP growth.
"House prices are rising, inflation fell in February, and the base rate is expected to come down further this year. These are all positives, highlighting that the property market remains bouyant, and this is important given how significant the sector's contribution to GDP is. In future statements and budgets, we need the Chancellor to focus more energy on supporting homebuyers and borrowers, which will further stimulate growth in the market."
Tim Parkes, CEO of RAW Capital Partners: “It might not have the standing of the Autumn Budget, but the Spring Statement was an opportunity for the government to set out a bold vision for growth nonetheless. However, today’s speech highlighted that there remains a keen focus on fixing legacy issues, both with the state of the economic and within the property sector, most notably where housebuilding is concerned. This is, of course, important. But the UK also needs a more proactive and forward-thinking strategy to meaningfully encourage economic growth.
“Creating the right conditions for investment should therefore be the government’s top priority if it hopes to attract both domestic and international capital. This means not just stabilising the economy and filling the fiscal blackhole, but fostering an environment where businesses and investors feel confident to commit to the UK for the long term.
“But the government can’t do it all on its own, so specialist lenders have a key role to play in facilitating overseas investment into UK property and contributing to a growing economy. By offering a tailored approach to lending and bespoke financial products, they can help international investors navigate the market with greater confidence, while reinforcing the UK’s position as a prime destination for investment.”
Richard Donnell, executive director at Zoopla: “The housing market needs a strong and growing economy to support housing supply. It’s promising to see the Government focusing on longer-term impact by boosting funding for new homes and avoiding short-term measures like stamp duty holidays that don’t really help with the fundamental challenges in the housing market.
“The top priority should be an easing of mortgage regulations, which will support first-time buyers, an important buyer group for homebuilders and the broader market.
“This would also help the rental sector, where there are still 12 people chasing every home for rent, with those on low incomes bearing the brunt. Increased funding for social housing is essential in the upcoming Spending Review to help support housing delivery and boost the stock of social rented homes, which has been static for 30 years.”
Mark Harris, chief executive of mortgage broker SPF Private Clients: “The Spring Statement was underwhelming as far as the housing market is concerned.
“The Chancellor missed an opportunity to boost all-important transactions by extending the stamp duty concession or introducing some discount for downsizers. She also did nothing for first-time buyers, with no incentives or assistance to get them on the housing ladder – a significant shame as first-time buyers are the lifeblood of the market and enable existing homeowners to move up the ladder.
“Housebuilding, easing planning rules and improving the supply of new homes is vital but there was very little detail as to how these targets will be delivered.”
Matt Harrison, commercial director at finova Broker: “It’s disappointing to see that the Spring Statement has not introduced any meaningful measures to support homebuyers in light of the upcoming Stamp Duty changes. With the tax-free threshold set to drop in April 2025, we are already seeing a rush of buyers trying to complete transactions before the deadline, which is likely to be followed by a sharp slowdown later in the year. This pattern of market peaks and troughs is becoming all too familiar and does little to promote long-term stability.
“A more measured approach, with policies aimed at sustaining steady growth rather than fuelling short-term spikes, would have been welcomed by both buyers and industry professionals. Without intervention, affordability challenges will persist, and many prospective homeowners may find themselves priced out of the market. A more strategic, long-term vision for the housing sector is sorely needed.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman: “Our first wish was granted – the Chancellor didn’t do much, if anything, to deter existing activity in the housing market.
"The first way of dealing with a problem is to recognise it and the Government seems to have realised that there is a housing crisis. It has been widely accepted that affordable housing in particular is insufficient and improving planning is a significant contributor to that aim. Rachel Reeves said herself that it is too slow so the extra funding announced yesterday in the social and affordable homes programme is good news, although we still need more detail of where, when and how those spades are going to be in the ground.
“We are disappointed there wasn’t more direct assistance for the private sector, particularly SMEs who cumulatively can make such a big difference to the overall problem. Builders won’t build unless it is profitable for them to do so and there is reasonable prospect of adequate demand for the product envisaged. It would have been good to see some recognition of this.
“It also seems a little unfair on those who have moved heaven and earth to take advantage of the stamp duty concession before it disappears but who may not make it, through no fault of their own. The deadline could perhaps have been extended for those transactions in solicitors’ hands from the beginning of February as a small respite. Looking forward, a broader review into the impact of stamp duty on the market and making it less of a deterrent, particularly at the first-time buyer end, would have been welcome.
“We were sorry not to see anything supporting landlords to stay in the sector because it is not just a question of keeping house prices in check but also rents, which have softened a little lately but are still too high.
“Overall, it’s a six out of ten. Could do better and hopefully this will improve to an eight out of ten in the next few months if these policies are seen to be making a contribution."
Colleen Babcock, property expert at Rightmove: “It’s extremely disappointing that the government have not used the Spring Statement as an opportunity to extend the impending Stamp Duty deadline for those currently going through the home-moving process. We estimate over 70,000 buyers are going to miss the deadline and complete in April instead, and a third of those are first-time buyers.
“Given the current challenges faced by first-time buyers, our data shows that a typical first-time buyer in Britain now faces average monthly mortgage payments of £940, a 59% increase compared with £590 per month five years ago. Over that same period rents have increased by 40% across Great Britain. So, while we welcome the government's focus and investment to help build more affordable homes, we’re keen to hear more about how this, or other incentives, can help more first-time buyers.”
Ben Thompson, deputy CEO at Mortgage Advice Bureau: “While the Chancellor has reinforced the government’s commitment to get Britain building again, and declared that households will be £500+ a year better off on average, there was little else for aspiring first time buyers or home movers to get excited about in today’s Spring Statement.
"The focus now must shift towards more direction and innovation from regulators and lenders to support a larger pool of borrowers and open up the housing market. Responsible lending proposals to consider relaxing affordability criteria and LTI caps, and the development of mortgage products that focus on rental track records are just some of the options that would be welcomed with open arms, making homeownership more accessible and affordable.
“We’ve also long campaigned that those who buy or retrofit their homes to a higher EPC rating should be rewarded. This is alongside pushing for more concrete investment to encourage retrofitting 29 million of UK homes. We believe this can be achieved through offering a Stamp Duty refund to those who buy and then retrofit to an EPC rating of C or above, and we hope this will be reconsidered by the government in the future.”
Mark Tosetti, CEO of Conveyancing Alliance: “After an underwhelming Spring Statement, especially concerning the property market, it now appears the sector must pull itself up by its bootstraps. Let’s focus on the areas we can improve internally. We know the government has committed to digital transformation; we too must continue to commit to this.
“We as an industry must continue to invest in people, in innovation and tech, and in other enablers that support the ambition of individual brands and ultimately builds the whole sector up with it. Investing in our platforms to drive efficiency, quality and turnaround times, deploy best-in-class solutions can help break down blockers across the industry.
“This was not a defining Statement for the Chancellor, but that doesn’t stop it being one for the sector.”
