With Chancellor Rachel Reeves set to deliver her Spring Budget Statement on 26 March 2025, the UK property sector is watching closely to see whether government measures will ease pressure on the housing market or contribute to further instability.
Jonathan Handford, Interim Managing Director of Fine & Country, has outlined key reforms that he believes will help stimulate the sector and drive broader economic growth.
With Stamp Duty set to increase from 31 March, reverting to pre-September 2022 thresholds, Handford is urging the Government to reconsider. As one of the few tools available to stimulate the property market, he believes Stamp Duty should be reduced rather than increased.
“At a time when borrowing costs remain high, the additional burden of Stamp Duty acts as a deterrent, discouraging homeowners from moving,” says Handford.
PROHIBITIVE COST
“For many would-be movers, particularly families looking to upsize or older homeowners considering downsizing – the upfront tax cost is simply prohibitive. Reducing Stamp Duty 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.”
A buoyant property market has a ripple effect on the wider economy, benefitting industries such as construction, home improvement, retail, and professional services. Handford adds: “A more fluid, less-taxed housing market is a win for everyone.”
REINTRODUCE HELP TO BUY
The previous Help to Buy initiative was far from perfect, but it succeeded in one crucial area – getting people moving. Handford is calling for a revised version of the initiative that better addresses current market challenges.
“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.”
PLANNING REFORM
Handford also highlights the urgent need for planning reform to address the UK’s chronic housing shortage. Supply continues to lag behind demand, particularly in areas of high economic activity, due to an outdated and restrictive planning system.
“We need a planning process that is streamlined, transparent, and supportive of responsible development,” he says.
“Unlocking land, cutting bureaucratic red tape, and encouraging quality housebuilding in the right locations will provide much-needed housing options and drive economic growth.”
PROACTIVE GOVERNMENT ACTION
Fine & Country is asking the Chancellor to take the necessary steps to support the housing sector in the upcoming Budget.
“The property market is a cornerstone of the UK economy,” says Handford. “By reducing Stamp Duty, reintroducing a modernised Help to Buy, and reforming the planning system, the Government can stimulate growth, increase affordability, and provide long-term stability.”
As the Spring Budget approaches, industry professionals and prospective homebuyers alike will be hoping for measures that promote a thriving, sustainable property market.
HOUSING REFORM
Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “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.”
