Spring Statement 2025
The Chancellor Rachel Reeves has cut the welfare budget further and boosted defence spending in a Spring Statement aimed at kick-starting the faltering economy. Meanwhile, the OBR – the government’s financial watchdog – halved its growth forecast for this year to 1%.
Now here’s a golden anniversary worth celebrating!
Celebrating the 50th anniversary of the Sex Discrimination Act, which enabled women to secure mortgages independently. The number of primary female mortgage applicants has increased recently, however the gender pay gap still presents a home ownership barrier to women.
Could ‘right-sizing’ help the housing market?
Many UK homes have unused bedrooms, limiting availability for first-time buyers. ‘Right-sizing’—moving to a more suitable property—could help address housing shortages by freeing up larger homes. However, emotional attachment and moving stress are key barriers to this.
A reminder of recent property tax changes
Autumn Budget announcements included an increased surcharge on second homes (5%), adjusted Stamp Duty for first-time buyers, and increased Capital Gains Tax rates for investors. Additionally, £500m was allocated for affordable housing and supporting small housebuilders.
In the news – Home Finance
UK homeowners saw average property value gains of £80,000 in 20 years. Storm damage affected 20% of homes from 2020-2024, highlighting the need for insurance. Equity release grew in 2024, with £615m withdrawn by homeowners over 50 in Q3.
Economic Review
Our latest Economic Review looking back on April includes – the UK economy returns to growth, inflation eases, strong rise in retail sales, jobs market continues to weaken and the markets at month end.
Record sales in 2024 and a surge expected in early 2025
In 2024, the UK housing market saw the highest level of sales since 2020, fuelled by reduced mortgage rates. A Q1 2025 surge is expected as Stamp Duty relief ends, but future activity depends on economic conditions and affordability trends.