by Sam Akbay
Spring Statement 2025: Key Takeaways for Estate Agents
The Spring Statement 2025 delivered by Chancellor Rachel Reeves on March 26 introduced several key measures that will impact the UK property market. At Sam Akbay Property Agency, we are always keeping an eye on the latest policy changes to ensure our clients and partners stay informed. Here’s a breakdown of the most relevant points from the statement and what they mean for estate agents, homebuyers, and investors.
1. Stamp Duty Land Tax (SDLT) Changes
One of the biggest announcements was the reversion of stamp duty thresholds to pre-2022 levels, effective from April 1, 2025. This means:
- First-time buyers will now pay stamp duty on properties above £300,000, down from the previous £425,000 threshold.
- For other buyers, the stamp duty-free threshold returns to £125,000, down from £250,000.
This change could lead to a short-term rush as buyers aim to complete transactions before the deadline. However, once the new rates take effect, some segments of the market may experience a slowdown.
2. Planning Reforms and Housing Supply
The government has reaffirmed its commitment to increasing housing supply, setting a target to build over 305,000 new homes annually by 2029. Planning reforms will be introduced to streamline development and boost the number of homes available. However, this falls short of Labour’s earlier pledge to build 1.5 million homes over five years.
For estate agents, these reforms present opportunities to work closely with developers and investors looking to capitalise on new projects. Keeping up with planning policy changes will be key to identifying the best investment opportunities.
3. Mortgage Rate Forecast
The Office for Budget Responsibility (OBR) has projected that mortgage rates will rise from an average of 3.7% in 2024 to 4.7% in 2028. With borrowing costs set to increase, affordability may become a growing concern for buyers, leading to slower property market activity.
Estate agents should be prepared to advise clients on mortgage options, encourage buyers to secure deals before rates climb further, and explore alternative financing solutions such as fixed-rate mortgages and shared ownership schemes.
4. Tax Compliance and Digitalisation
The government is taking a stronger stance on tax compliance, aiming to raise an additional £1 billion over the next four years by tackling tax evasion and avoidance. Key measures include:
- Stricter penalties for late tax payments.
- Expansion of Making Tax Digital (MTD), requiring VAT-registered businesses and self-employed individuals earning over £50,000 to comply with digital tax reporting.
Estate agencies should review their financial practices to ensure compliance and avoid penalties. Digital tax reporting will become a bigger part of business operations, so now is the time to streamline accounting processes.
5. Economic Outlook and Market Confidence
The OBR has adjusted its UK economic growth forecast from 2% to 1% for 2025, reflecting ongoing financial challenges. While this may dampen market confidence, the continued demand for housing, particularly in key areas like London, remains strong.
What This Means for Estate Agents
- Short-Term Market Fluctuations: Expect increased activity before the stamp duty changes, followed by a possible slowdown.
- Opportunities in New Developments: With new housing supply targets, there will be increased scope to work with developers.
- Mortgage Market Sensitivity: As rates rise, agents will need to be proactive in advising buyers on financing options.
- Tax Compliance is Crucial: Agencies should ensure they are up to date with tax regulations to avoid penalties.
Final Thoughts
The Spring Statement 2025 outlines a mixed outlook for the property sector, with opportunities in housing supply expansion but challenges in affordability and tax compliance. At Sam Akbay Property Agency, we are here to help our clients navigate these changes, ensuring they make informed decisions whether buying, selling, or investing.
For expert advice on the London property market, get in touch with us today!
