Chancellor Rachel Reeves reaffirmed the government’s commitment to affordable housing and took credit for cheaper mortgages in her Spring Statement today.
Speaking to the House of Commons, Reeves gave a broad brush speech, with specific economic policies limited to the Autumn Budget.
But on the housing and property sectors she said the government was committed to affordable housing and that the typical new fixed-rate mortgage had fallen by £1,300 a year since Labour took power due to successive base rate cuts by the Bank of England.
Reeves added that the latest growth forecasts from the Office for Budget Responsibility (OBR) showed that Labour’s economic path “was the right one”.
These OBR forecasts show that GDP growth will slow to 1.1% in 2026, before rising to 1.6% in 2027 and 2028 and then to 1.9% in 2029 and 2030.
“The change that we promised has already started,” she said.
The mortgage and property market said the calm Spring Statement was in fact welcome.
OnTheMarket president Jason Tebb said: “Today’s Spring Budget 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.
“This is certainly a step in the right direction to restoring a sense of stability and rebuilding the confidence among buyers and sellers that drives market momentum.”
Mortgage Advice Bureau strategic lender relationship director Rachel Geddes said: “From a lender’s point of view, a steady Spring Statement with no big surprises is actually good news. When the government avoids sudden policy changes, it helps keep the financial markets stable and consistent.”
Nevertheless, the chancellor’s optimism ignores the ongoing situation in the Middle East, according to Wealth Club chief investment strategist Susannah Streeter.
Streeter said: “The Chancellor was trying to project a ‘keep calm and carry on’ message, but market turmoil continued during her speech, with UK borrowing costs having shot up and London’s FTSE 100 deep in the red, staying around 2.6% lower.
“Although there was a nod to the current turbulence, the forecasts don’t take into account the rapidly-developing situation in the Middle East. So even though Rachel Reeves championed forecasts of a further fall in inflation, there’s a clear and present danger of the price spiral taking off again due to escalating conflict with Iran.”
