Spring budget 2024

7th 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