Spring budget 2024

7 March 2024

The Spring Budget this year felt very much like a keep calm and carry on budget for the housing market. There were no dramatic policy announcements to interrupt usual housing market activity.
Rightmove mortgage expert, Matt Smith, said: “Despite mortgages being one of the defining topics of 2023, there is not one mention of the word in the 98-page Spring Budget. Whilst a 99% mortgage scheme was reportedly considered, it appears to have been scrapped and then no replacement found. More innovation is needed to help first-time buyers with smaller deposits, and those who are struggling to borrow enough to get onto the ladder.”
Better inflation forecasts from the Office of Budgetary Responsibility are good news for interest rates. The OBR forecast inflation will go below 2% in a few months’ time.
There were policy announcements relevant to parts of the housing market (landlords and second homes): cutting the higher rate capital gains, changes to second home tax relief and stamp duty relief for multiple dwellings.
Throughout the budget there was a strong focus on growth sectors like green industries, tech and life sciences.
For example £120m on a green industries growth innovator, £650m on a Cambridge biomedical campus and Liverpool Vaccine Centre and £270m for advanced manufacturing industries. Source: #Dataloft, UK Government, Office for Budget Responsibility Mar 2024