The announcements in the Spring Statement will not have a disruptive effect on the mortgage market, but there were some missed opportunities, industry experts have said.
Chris Sykes, technical director at Private Finance, said he expected today’s Spring Statement to cause “minimal disruption [to] the mortgage market”.
He said the revision to the growth forecast from 2% to 1% by the Office for Budget Responsibility (OBR) was “largely anticipated”, so he did not think it would impact swap rates, which dictate mortgage pricing, in the next few days.
Sykes added that although inflation dipped by 0.1% to 2.8% in February, this would be “short-lived”, as next month’s energy bills and higher employer National Insurance contributions (NICs) come into effect.
“Swaps, which have crept up over the past month, have put pressure on the margins of mortgage rates against the cost of funds, leaving limited room for further rate reductions in the near future.
“With the base rate holding steady in March, mortgage rates are likely to remain around current levels – assuming funding costs remain stable following today. For mortgage rates to see a more significant shift, a base rate cut would be needed – something we hope to see in May, though is not guaranteed, given inflation concerns,” he explained.
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Sykes said given Labour’s ambitious housebuilding targets, new builds were expected to be a “priority for lenders”, so criteria were expected to be tweaked in this area.
“However, building homes is only part of the solution – helping first-time buyers access them is just as important. No changes were announced to Lifetime ISAs (individual savings accounts), and stamp duty changes will take effect in the coming days, increasing the tax burden for many first-time buyers,” he warned.
Jeremy Leaf, North London estate agent and a former Royal Institution of Chartered Surveyors (RICS) residential chair, said the Chancellor “didn’t do much, if anything, to deter existing activity in the housing market”.
“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,” he said.
Leaf said it was a shame not to see anything supporting landlords to stay in the sector, as it was crucial to keep house prices stable, as well as rents.
“Overall, it’s a six out of 10. Could do better and hopefully this will improve to an eight out of 10 in the next few months if these policies are seen to be making a contribution,” he noted.
Chance for ‘meaningful action’ missed
Richard Pike, chief of sales and marketing at Phoebus Software, said the Spring Statement was a “chance for the government to take meaningful action on the UK’s housing challenges, but it fell short”.
He continued: “With housebuilding targets under pressure and affordability concerns growing, we needed bold, practical measures – not just rhetoric. The 2025 UK economic growth forecast has been halved to just 1%, which will inevitably impact business confidence. In an uncertain economic climate, clear policy direction is needed to support investment in housing and ensure developers, lenders, and buyers have the confidence to move forward.
“Despite Labour’s commitment to boosting housebuilding, the real test lies in delivery. While the OBR forecasts housebuilding will reach its highest level in over 40 years by 2029/30 as a result of planning reforms, it will still fall short of the 1.5 million homes target, but if 1.3 million homes are built, that would still be an excellent result.”
Pike said the government needed to “do more to unlock existing supply”, particularly in affordable and later life housing.
“Greater support for SME developers and a move towards reassessment of stamp duty could have helped create a more dynamic and accessible market at a time when economic uncertainty risks slowing progress further.
“For lenders and intermediaries, making property transactions smoother and more efficient should be a priority. But with no clear commitment to improving digital infrastructure or fostering innovation in mortgage technology, the barriers that slow down home purchases remain firmly in place. Hopefully, the excellent work we and others are involved in with Open Property Data Association will help in this area.
“This was a missed opportunity to put forward real solutions to the housing crisis. The industry needs more than warm words – it needs decisive action,” he noted.
John Phillips, CEO of Spicerhaart and Just Mortgages, said it would be “fantastic news” but a “big if” as to whether 1.3 million homes were delivered as the OBR forecast.
He continued: “It was good to see further funding earmarked for affordable housing, as well as additional funding for the next generation of construction workers – although both were announced in advance.
“Today’s statement really offered nothing new and once again demonstrates the clear disconnect within government between supply-side measures and tangible action and support to actually address affordability challenges faced by potential buyers in today’s housing market.”
Focus on non-supply-side measures also needed
Ben Thompson, deputy CEO of Mortgage Advice Bureau (MAB), said while there were some positive elements, such as disposable income improvement, there was “little else for aspiring first-time buyers or homemovers to get excited about” in today’s Spring Statement.
He continued: “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 loan-to-income (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.”
Phillips said the industry has “long called for greater support”, such as equity loan schemes or for existing schemes like shared ownership, to “help people buy and ultimately support demand for new houses.”
“The housing market plays a critical role in driving economic growth. While increasing supply is absolutely critical, we need measures now to give buyers the ability to buy – not just to enable people to achieve their homeownership goals, but to give the economy the adrenaline shot it needs,” Phillips noted.
