Rachel Reeves has pledged “economic security in an uncertain world” after delivering a low-key Spring Statement but property industry figures say the update offered little immediate support for the housing market.
Speaking to MPs, the Chancellor acknowledged rising economic uncertainty linked to escalating tensions in the Middle East, which have driven sharp increases in energy prices.
The cost of Brent crude rose more than 7% while gas prices jumped 23%, raising concerns that prolonged volatility could push inflation higher and delay interest rate cuts.
Reeves said she remained in close contact with Andrew Bailey and highlighted updated forecasts from the Office for Budget Responsibility showing that “inflation is down, borrowing is down, living standards are up and the economy is growing”.
SIGNIFICANT IMPACTS
However, the OBR trimmed its UK growth forecast for 2026 to 1.1%, down from 1.4%, and expects unemployment to rise to 5.3% this year. The watchdog also warned that a widening Middle East conflict could have “very significant impacts” on the global and UK economies.
Industry reaction to the statement was mixed.
Nathan Emerson, CEO of Propertymark, says: “The Spring Statement underscores the ongoing pressures in the UK housing market, particularly around affordability for renters and first-time buyers.
“While it does not introduce major new housing policies, the focus on supporting economic stability and the commitment to implement planning reforms by the end of the year are welcome steps.”
However, Emerson warns that more action will be needed to boost housing supply and affordability.
“Mortgage approvals remain below pre-pandemic levels, and house prices continue to rise modestly, leaving many prospective buyers struggling to enter the market. Stamp Duty remains a significant barrier to mobility,” he says.
Colleen Babcock, property expert at Rightmove, says the absence of major announcements could still help stabilise the market.
“After the long build-up to November’s Autumn Budget, which was full of near-daily rumours about tax and policy changes, it’s been reassuring to see a much calmer run-up to the Spring Forecast,” she says.
“It was always expected to be lower-key, and the lack of headline-grabbing announcements should help give movers more confidence and certainty right now.”
Others were more critical. Jeremy Leaf, a north London estate agent and former Royal Institution of Chartered Surveyors Residential Chairman, says that the statement lacked support for buyers.
“While there has been less speculation about tax rises and spending cuts this time around, the Chancellor also hasn’t delivered any encouragement for first-time buyers, who are the engine room of the housing market and enable transactions to be unlocked further up chains,” he said.
Jason Tebb, President of OnTheMarket, welcomed the calmer tone.
“The Spring Statement was as low-key as many of us were hoping for. After the turbulence surrounding the Autumn Budget, a continued period of clarity and certainty is now what the market needs more than ever,” he said.
Planning specialists also pointed to the longer-term outlook for housing supply.
Lawrence Turner, Director at Boyer, part of LRG, says the figures highlight a near-term slowdown in housebuilding.
“The Spring Statement quietly admits something the housebuilding industry already knows: there will be a slowdown before things get better,” he said, noting that housing delivery is expected to fall to around 220,000 homes in 2026-27 before recovering to just over 305,000 by the end of the decade.
And Adrian Plant, director of SOWN, the shared ownership division of LRG, says that the forecasts reinforced the need for more support for buyers.
“Now more than ever, the government must do more to support first time buyers through supporting Shared Ownership,” he says.
