There were mixed fortunes for the property sector following the spring statement delivered by chancellor Rachel Reeves.
The government’s planning reforms and housebuilding ambitions were given the thumbs up from the Office for Budget Responsibility (OBR) but on the flip side economic growth forecasts have been halved.
Announcing the figures to MPs, Ms Reeves said the government’s planning reforms will deliver an extra 170,000 homes by 2029/30. This was backed up by the OBR which suggested the government is on track to build an extra 1.3 million homes by the end of this parliament, falling short of its manifesto promise of 1.5 million.
Alongside this was the announcement of £625 million to be spent in England on training 60,000 construction workers and an additional £2 billion to build 18,000 new social and affordable homes next year, something which it’s hoped will increase confidence amongst housebuilders.
The OBR estimates the reforms will boost economic growth by 0.2% over the five-year forecast period and 0.4% by 2035.
The less good news was economic growth forecasts were halved from 2% to 1% alongside an expectation by the OBR of inflation to average 3.2% by the end of this year, up from previous predictions of 2.6%.
Sheldon Bosley Knight’s regional sales manager and associate director, Kevin Jackson said: “The spring budget was delivered with the main focus being on defence spend and the unfortunate benefit cuts. That being said, we took a noted interest in the on-going commitment to support housing development with a promise to deliver 170,000 social and affordable homes across the UK per year. However, the support to open up some green field areas will be welcomed by some and not by others, I’m sure.
“Whilst we continue to see a busy market with plenty of buyers registering, the promise of so many new affordable homes will absolutely boost first time buyer activity and this will spark a ripple up the chains to the rest of the market, which will be welcomed by the property industry.
“Although the industry will continue to be impacted by the current cost of living crisis, we feel confident we will see a buoyant market during 2025.”
