Ahead of the Spring Statement tomorrow (26th March 2025), Jeremy Leaf, a North London estate agent and former RICS residential chairman, has shared his hopes and concerns.
Leaf said the unpredictable economic climate has left investors and developers hesitant.
Leaf said: “While the economic climate remains unsettled both at home and abroad, investors and developers are reluctant to act. Uncertainty is the enemy of investment.
“Here, deep cuts to welfare benefits, increases in defence spending while interest rates, inflation and borrowing remain high, means extra funding for private housebuilding, renting or other parts of the industry is unlikely.
“Employers worries about imminent rises in national insurance and the minimum wage will weigh just as heavily on those who may have otherwise considered taking on or adding to existing finance too.”
Leaf observed that the Chancellor’s options in the Spring Statement are limited.
Leaf added: “More than anything, we don’t want Rachel Reeves to compromise existing buyer and seller activity but do want her to further support growth where possible.
“A steady rise in the number and pace of transactions is not only good for the property market but for the economy in view of the multiplier effect on job and social mobility.
“In particular, first-time buyers are pivotal as they regularly trade up to release ‘second steppers’ as well as connect chains.”
Leaf also highlighted the shortage of affordable homes and the need for better use of existing resources, such as reducing empty properties and utilising under-used land to meet population growth.
He pointed out planning delays due to Council resource shortages as a barrier, especially for SMEs, which cannot afford project pauses.
He stressed the need for construction activity to keep prices and rents stable, noting that builders will only pursue planning if projects are profitable.
He also mentioned local authorities and housing associations could step in if they have the resources.
He said: “Local authorities and housing associations may take their place if sufficient resources still remain after meeting other responsibilities such as fixing cladding, damp, mould as well as other health and safety obligations.”
On sales, Leaf said demand has been resilient due to buyers trying to benefit from the stamp duty concession.
He called for a fair distribution of Stamp Duty and quicker conveyancing processes.
He also urged support for lettings, as rising rents hinder savings for deposits and impact job mobility.
Measures to reduce the time for evicting disruptive tenants and better enforcement in short-let accommodation could help maintain rental supply, he said.
