Chancellor Rachel Reeves will stand in Parliament on Wednesday 26th March to deliver her much-anticipated Spring Statement; with many in the property industry hoping for no repeat of SDLT deadline extensions experienced in previous budgets. Helping first time buyers, planning reform and data are a priority for membership bodies and professionals in the home buying sector.
Reeves will deliver her statement from approximately 12.30pm with the economy, public finances and progress against the Government’s economic objectives all on the agenda. The Office for Budget Responsibility (OBR) will also provide an Economic and Fiscal Forecast. Many in the property market will no doubt hope for continued stability with the latest Housing Insight Report from estate agency membership body Propertymark suggesting agents are positive about the post-SDLT cliff edge.
Following the government’s intentions to modernise the home buying and selling process, the Open Property Data Association (OPDA) has called for the continued prioritisation of digitising the property market. OPDA Chair Maria Harris says dedicated funding must be allocated to make ‘meaningful progress.’
“(OPDA) are calling for dedicated funding to support government departments and local authorities in digitising property data at source. While existing initiatives such as MHCLG’s project with the Land Registry are important first steps, meaningful progress requires significant investment. Allocating budget for councils to digitise their property records will not only speed up transactions but also form the foundation for a smarter data ecosystem, empowering consumers to access and share their own property information.”
“By embedding digital property packs and a trust framework into the Government’s digitisation strategy, the UK can unlock economic growth, improve the home buying process, and ensure property data is fit for the future.A more transparent and efficient system will reduce transaction times, cut costs, and provide greater certainty for buyers, sellers, and industry professionals.”
Affordability and support for those looking to get onto the housing ladder is on the agenda for Propertymark and home moving comparison website reallymoving.
“With housing playing a key part in the UK Government’s plan for change, the Spring Statement must ensure government policy protects the delivery of more social and affordable housing and local authorities have the resources they need across planning, enforcement and infrastructure. Policymakers must also fully understand the need to reform housing benefits so they reflect real rental costs, and the UK Government must continue to target resources to tackle the cladding crisis and improve building safety to help boost economic growth.”
said Timothy Douglas, Head of Policy and Campaigns at Propertymark,
Rob Houghton, CEO of reallymoving added
“The Lifetime ISA is a great concept but the failure to raise the price cap in line with house price inflation has rendered it completely impractical for many people trying to buy their first property, particularly in London and the southeast. It’s incredibly unfair on those who have been saving faithfully into a LISA for years but now find themselves effectively priced out of the market. When it was introduced in 2017, you could reasonably expect to buy a starter flat under the price cap of £450,000, but house prices have risen by 34% since then whilst the cap hasn’t budged.
“Our data shows that in London, nearly half (47%) of First Time Buyers need to spend more than £450,000 to buy a property, meaning if they’ve saved into a LISA, they will either face penalties to withdraw their deposit money or they will have to leave it for retirement and fund their property purchase another way. The Government has bold targets to build 1.5 million new homes over the course of this parliament, but it will take time for increased supply to filter down – and in the meantime, affordability is still the biggest issue facing First Time Buyers. I urge the government to raise the Lifetime ISA cap to £600,000, which is what it would be today if it had risen in line with inflation, and index-link it going forward.”
Jonathan Handford, Interim Managing Director of Fine & Country, says key reforms could help stimulate the sector and drive broader economic growth. He is calling for a permanent reduction to stamp duty, arguing reducing the up front tax on home ownership would ‘not only make it more affordable to move, but the resultant increase in transaction volume would likely offset any shortfall in per-transaction revenue for the Treasury. More importantly, it would deliver a significant boost to the broader economy’ reminding us that a buoyant market fuels construction, home improvement, retail, and professional services.
Like Houghton, Handford also says some sort of home ownership support for first time buyers.
“First-time buyers are the foundation of the property market. Without their ability to take that first step, transaction chains stall,” he explains. “A reimagined, better-structured Help to Buy scheme would breathe fresh life into the market, empowering younger generations to buy their first home, while simultaneously unlocking transactions further up the chain. It’s not simply a case of helping individuals; it’s about underpinning a vital sector of the UK economy that touches millions of lives.”
With the second reading of the Planning and Infrastructure Bill having taken place this week, which plans to introduce primary legislation to tackle planning reform and red tape, strengthen the compulsory purchase process and reduce the number of legal challenges to ‘meritless’ planning cases. the hope is the Spring statement will continue to drive through the reforms needed to unlock land, cut bureaucracy and encourage house building int he right places concludes Handford.
