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.
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.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman: “The need to improve economic growth and address rising unemployment is probably even more important now than it was at the time of last November’s Budget but the chancellor failed to offer much prospect of change.
“While there has been less speculation about tax rises and spending cuts this time around, the chancellor also hasn’t delivered any encouragement for first-time buyers, who are the engine room of the housing market and enable transactions to be unlocked further up chains. There was nothing in terms of stimulating more new housing or any detail as to how she plans to increase transactions, which are not only good for the property industry but also job and social mobility, as well as keeping house prices in check.
“While the spring forecast is unlikely to choke off recent increases in home buyer and seller confidence, what happens in the Middle East – with its potential to increase inflation and keep interest rates higher for longer – may have more of an impact.”
Paul Ebbs, divisional managing director at Dandara: “The Spring Statement may not be designed to grab headlines, but for those of us building homes, stability is exactly what the market needs. In uncertain economic times, consistency in fiscal policy, planning direction and forward forecasts gives businesses the confidence to invest, hire and deliver.
“That stability, however, must translate into action on the ground. Planning reform and steady economic messaging are welcome, but if councils remain constrained by funding and capacity pressures, delays will continue to hold back delivery. Certainty only works if it results in decisions being made and sites progressing.
“With the economy regaining momentum, the priority now should be turning confidence into construction. A clear, multi-year outlook on investment and planning certainty would provide a strong foundation for sustained housebuilding.
“But stability alone will not stimulate demand. To truly get the market moving again, we need targeted measures that support buyers and unlock transactions, whether that is a renewed form of Help to Buy or a comparable scheme that gives first-time buyers the confidence to step forward.
“If stability is the message from the Chancellor, the next step must be ensuring that stability delivers homes on the ground.”
Brian Berry, chief executive of the FMB: “Today’s Spring Statement was a missed opportunity to deliver the decisive action the construction industry urgently needs. While the Chancellor focused on reiterating previous announcements, small builders were left waiting for the practical measures that would unlock growth, boost housebuilding, and drive progress on retrofitting the UK’s homes. The Chancellor’s recognition that more needs to be done to get young people into apprenticeships and employment was welcome but the industry has heard similar promises before. Without clear policy detail, commitment to funding, and a long‑term plan to support SMEs, warm words do not translate into real jobs or skills.
“This Spring Statement could have set out concrete steps to support small and medium-sized builders to deliver the homes the country desperately needs, accelerate energy‑efficient retrofitting, and introduce a robust licensing system to raise standards across the industry. Instead, it was another chance for real progress that has been allowed to pass by. If the Government is serious about economic growth, improved productivity, and meeting its housing and climate ambitions, it must move quickly from rhetoric to action and put small builders at the heart of its plans.”
Tim Sargeant, chairman at City & Country: “The 2026 Spring Statement was a quiet affair, but I can’t help but think that the Chancellor has missed an opportunity to use her platform to address housing, given the value that it holds both politically and culturally. Elsewhere in Europe, housing is regarded as essential infrastructure that drives the economy and supports a healthy and happy populace. Pair that with the dynamism and innovation that Britain is best known for, and we could quite easily create a housing model that is fit for purpose.
“I want to see more from the government around increasing delivery and encouraging a strong but stable market. growth, a stable workforce and supply chain, and reduced barriers to delivery should be at the top of the agenda. Instead, we have been subject to decades of mounting bureaucracy that ultimately ties up development while increasing costs.
“Builders are already paying enormous taxes each year, around 32% of the sales value of every home they build, not including CIL and Section 106 agreements. This cements what we do as essential infrastructure. In return, Government must change its approach and remove hurdles to development to speed up sales volumes. For buyers, moving house is often more of a trauma than it is worth. Reforming Stamp Duty would help to resolve this and encourage sustained investment in the housing market.”
Simon Cox, CEO of Walter Cooper: “What the market needs above all else is more clarity and better decision making. Today’s Spring Statement did little to reassure on that front. The housing sector is already under immense pressure from a land and delivery perspective, and increased taxation in previous Budgets has exacerbated that concern.
“If the government is serious about its growth strategy, it must create a policy and operating environment with a long-term strategy that encourages sector investment rather than deters it. Land owners and developers want to build new homes and create a pipeline of viable land, but without clearer direction and a more efficient planning system, the current approach is not conducive to a healthy and thriving economy.”
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.”