Chancellor Rachel Reeves has delivered her Spring Statement to the House of Commons, setting out updated forecasts for growth, inflation and the public finances.
The latest projections from the Office for Budget Responsibility show UK economic growth of 1.1% this year, down from a previous forecast of 1.3%. Growth is expected to rise to 1.6% in 2027 and 2028, before easing to 1.5% in 2029 and 2030.
Reeves said her fiscal headroom has increased from £21.7bn to £23.6bn, providing a larger buffer against potential economic shocks.
There were no significant new housing measures in the statement, although the chancellor reaffirmed the government’s commitment to delivering more affordable homes.
Industry reaction:
Vanessa Hale, Head of Research & Strategy at BNP Paribas Real Estate “Today’s Spring Statement was muted as anticipated following the changes of the Autumn Budget. For real estate, the more significant story is how the market is adjusting to structural pressures rather than reacting to fiscal measures. The UK property market has moved into 2026 in recalibration mode. Investment volumes proved more resilient last year than many anticipated, underlining that capital continues to back the UK despite political and economic noise.
“We are operating in an environment of constraint. Vacancy rates remain low across many sectors, development pipelines are restricted by viability and planning friction, and regulatory evolution continues to shape investor decision making. Rents are rising in several segments, but supply is not responding quickly enough. At the same time, long term demand drivers are evolving. An ageing population, smaller households and digitally native generations are influencing how space is designed and used. AI linked infrastructure, including data centres and the energy capacity that supports them, is becoming increasingly strategic. Environmental pressures are also sharpening the focus on operational performance and resilience.
“For 2026, we are forecasting investment volumes of around £56 billion, representing steady growth on 2025. Pricing is more stable, capital is more decisive and confidence is gradually returning.
“What needs to happen now is greater clarity and delivery. Planning reform must translate into viable development. Energy infrastructure needs to scale at pace to support digital growth. Policy consistency will be critical to unlocking supply. For investors and occupiers alike, the priority is disciplined capital allocation, active asset management and a focus on assets that can deliver resilient income and long-term relevance in a more selective market.”
Rightmove’s Colleen Babcock: “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 today’s Spring Forecast. 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.
“Looking ahead to the Autumn Budget, which is the government’s big opportunity for policy change this year, we’d really like to see stamp duty properly looked at. The current bandings haven’t kept up with house prices, and as a result less than half of homes in England are now stamp‑duty free to first-time buyers, falling to just one in ten homes in higher‑priced regions like London. For most movers, the tax is unavoidable, and it can be a real deterrent, particularly for those at the top of chains considering a downsized move.
“With around seven or eight months to go until the Autumn Budget, there’s time for the government to give some serious thought about how the system could be improved. That could mean a more regionalised approach, higher zero‑rate thresholds, spreading payments over a longer period, or even scrapping stamp duty altogether. In its current form, stamp duty remains a major barrier to movement, which isn’t good for would-be buyers and sellers, or for the wider economy.”
Jason Tebb, president of OnTheMarket: “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.”
Sanjay Joshi, director of Lawsons & Daughters: “While no major housing announcements were expected as part of the Spring Statement, the stability that comes with that is welcome after a tumultuous Autumn Budget. However, the market still needs reassurance as confidence among buyers and sellers is only just beginning to recover after a volatile period.
“Support for first-time buyers remains essential, as they help keep the market moving and unlock activity across the wider housing chain. Landlords also play a vital role in providing rental homes and maintaining supply. With significant legislative changes on the horizon, including the Renters’ Rights Bill and evolving energy efficiency requirements, clarity will be important to ensure continued confidence and investment across the sector. Protecting confidence across all parts of the market will be key to sustaining activity in the months ahead.”
