UK Spring Statement 2025

As the UK awaits the 2025 Spring Statement, Mortgage Introducer has gathered expert predictions on what Chancellor Rachel Reeves may announce, and what it could mean for the property market economy. Though not a full fiscal event, the statement is expected to shed light on the government’s financial outlook and revised forecasts from the Office for Budget Responsibility (OBR).

Among the experts featured is Luther Yeates, Head of Mortgages at Orton Financial. His comments provide a clear picture of what both lenders and borrowers can expect in the months ahead. Yeates explained: “In normal times, you would expect rates to be cut, stimulating growth. The Bank of England is bound by its inflation target. So, they will keep the base rate high, which in turn creates a high-interest rate environment.

“Despite suggestions that the UK’s economic stagnation could extend for the rest of the year, lenders still have an appetite to lend, and are seeking new ways to do so. We have even seen some high street lenders shift into the specialist lending space as everyone searches for new business opportunities. This includes higher income multiples, relaxed interest-only policy and foreign currency income. There will also be changes behind the scenes, as lenders are constantly reviewing their acceptance of adverse credit.

“If the economic forecast is pessimistic, lenders are likely to price in any perceived economic downturn, as they are more likely to see an increase in the number of defaults, or borrowers who require additional help. During COVID, many lenders were crippled by the influx of requests for support – something they would actively seek to avoid in the future. Higher rates will keep the volume of transactions down.

“There is never a good time to buy. Instead, there is simply the right property for you, at the right price. If buyers wait for interest rates to improve, we will see accelerated house prices. It is a buyers’ market at present, with uncertainty going forward.”

Read the full piece in IFA Magazine →

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