Spring Statement 2025: Highlights for Landlords

Chancellor Rachel Reeves’ Spring Statement on Wednesday spared landlords from tax hikes but offered little comfort to renters or her critics. 

Branded by opponents as an “emergency Budget” in disguise, the speech leaned heavily on recycled promises. Still, private landlords had reason to celebrate: no increase in Stamp Duty on second homes.

Housing Promised

The headline promise was an ambitious push to accelerate housebuilding to levels unseen in four decades. The Office for Budget Responsibility estimates that planning reforms, allowing development on grey belt land and enforcing mandatory housing targets, could lift GDP by 0.2% by 2030.

“To build these new homes, we need people with the right skills,” Reeves said, announcing a £600m fund to train 60,000 construction workers and establish 10 new technical colleges.

The government claims those measures will deliver 1.3 million homes over five years, inching toward its goal of 1.5 million. However, whether the plans can meet surging demand is an open question.

Critics were quick to pounce. Shadow Chancellor Mel Stride accused Reeves of wrecking the economy. “This is her legacy,” he declared, blaming Labour for turning Britain -- once the G7’s fastest-growing economy -- into a laggard with growth cut in half. 

Creaking Under Intense Pressure

The private rental sector (PRS) is under strain, with demand far outpacing supply. An industry professional welcomed the £2 billion pledge for social housing but dismissed the 18,000 new homes as a drop in the ocean.

“We’re falling behind our neighbours,” he warned, pointing to France’s more superior housing supply. “The government says it wants growth, but where housing is concerned, it’s doing the opposite.” 

Another professional voiced frustration that the Chancellor didn’t extend the looming Stamp Duty deadline, leaving an estimated 70,000 buyers facing higher costs including a third who are first-timers.

Yet some in the industry found reasons for optimism. One expert welcomed the focus on long-term housing supply over “short-term gimmicks” like Stamp Duty holidays but called for looser mortgage rules to support first-time buyers, a vital engine of the market. 

Conclusion

The government’s plan contains big promises but few quick fixes. Critics argue the measures fall short of fixing immediate pressures.

As growth sputters, rents continue to shoot up and homelessness surges, the pressure is on to deliver fast.