What the Spring 2025 Budget Means for the Property Market
The 2025 Spring Budget, under the headline “Securing Britain’s future,” brings significant changes to the UK property market. Chancellor Rachel Reeves’ economic plan outlines long-term goals, but what does it mean for homebuyers, sellers, investors, and landlords navigating the market?
“Securing Britain’s future” – that was the headline for the 2025 Spring Budget announcement, but what does this really mean for homebuyers, sellers, investors, and landlords?
While Chancellor Rachel Reeves laid out Labour’s first major economic plan since the general election, we’re looking past the politics to focus on what matters most to the people we serve every day: those trying to move, invest, or rent in a changing UK property market.
For Homebuyers: Mixed Messages
There’s no denying it – mortgage rates are still higher than many would like. While the Bank of England has cut the base rate three times since the 2024 general election, we’re still not near pre-2022 levels. That said, Reeves’ commitment to meeting the 2% inflation target by 2027 offers some insight into the Labour government’s end goal.
One big takeaway? The planning system is being reformed, which could unlock housing supply and ease pressure on prices in the long term. The government’s pledge to hit mandatory housing targets and bring “grey belt” land into development could mean more homes, particularly for first-time buyers struggling with affordability.
Avocado’s take: Keep an eye on mortgage products – lenders may start offering more competitive deals later this year if the rate cuts continue. If you need support in this area, have a chat with a mortgage broker who can take everything into account. Wider economic factors combined with your personal circumstances will dictate your ability to borrow, how much, and the interest rate you’ll incur.
Don’t leave this to chance – speak with our friends at Mortgage Tribe today!
For Sellers: Supply and Sentiment
If you’re selling in 2025, timing will be everything. The forecasted economic growth has been downgraded from 2% to 1%, which can shake buyer confidence. However, the government is focused on driving growth through infrastructure investment and boosting employment – both of which aim to support long-term stability.
With housebuilding set to hit a 40-year high, this could increase local competition in the next few years. But in the short term, sellers may still benefit from low housing stock and strong buyer demand, especially in well-connected areas such as London and the South-East.
Avocado’s tip: If you’re thinking of selling, the window to beat increased supply may be shorter than you think. Speak with your local Avocado Property Partnertoday to get a comprehensive valuation and tailored marketing strategy to support your next step on the property ladder.
For Investors: Big Promises, Bigger Questions
The headline for investors is growth – or rather, the potential for it. The Chancellor announced an extra £8.6 billion investment into the economy and highlighted planning reforms to unlock the “biggest positive growth impact” from any policy with no fiscal cost.
There’s also £1 billion allocated to get people back into work, which could increase demand for rental property near employment hubs.
However, with higher bills, tax pressure still looming, and rising rents, some investors may feel stuck between opportunity and uncertainty. Notably, there were no further tax increases announced – but Reeves made clear that the current fiscal rules are “non-negotiable”.
Avocado’s advice: Focus on high-yield areas with infrastructure plans nearby – those investments may pay off faster than elsewhere.
Want to understand more about how to navigate the current market? Subscribe to our podcast, The Investor’s Corner, for bi-weekly insights and strategy.
🏘️ For Landlords: Caught in the Crossfire?
Landlords continue to face pressure from all sides – higher interest rates, increased regulation, and more competition from institutional investors. The Spring Budget didn’t deliver any direct relief for landlords, and rising rent levelscould reflect a supply-demand imbalance caused by landlords exiting the market.
On the upside, planning reforms and “Get Britain Building Again” schemes could make it easier to expand portfolios or develop rental properties, especially with grey belt land now in play.
Avocado’s insight: Flexibility is key. If you’re holding onto underperforming assets, now might be the time to consider your portfolio strategy.
Speak with our Lettings Director, Andy Brown, who supports landlords in the Home Counties, Swindon, Stevenage, Solihull and beyond to help maximise their options and returns.
Don’t Skip the Survey – Work with Survey Network
With the 2025 Spring Budget forecasting a surge in housebuilding and planning reforms aimed at boosting supply, it’s likely we’ll soon see sellers outnumbering buyers in many areas – especially as more homes come to market.
In this changing environment, standing out is key. A pre-sale property survey can give potential buyers added confidence, reduce the risk of fall-throughs, and speed up the sales process by flagging any issues upfront.
Whether you're a seller looking to present your home in the best possible light, or a buyer keen to avoid hidden costs, working with a trusted surveyor is a smart move in an increasingly competitive market.
Our partners at Survey Network offer comprehensive, professional reports – from Level 2 and 3 to full Building Surveys – tailored to the needs of today’s property landscape.
Thinking of buying or selling this spring? Stay ahead of the curve – book your property survey with Survey Network today.
Final Thoughts: A Budget of “Fixing Foundations”
Reeves’ speech painted a picture of a broken system inherited, and a government eager to act “in the national interest”. She promised stability and security – but for many in the property world, the reality still feels uncertain.
From planning reforms and housing targets to capital investment and fiscal discipline, there are moves being made to reset the landscape. But how quickly these changes will translate to meaningful results on the ground remains to be seen.
If you’re navigating the market right now – whether buying, selling, investing or renting – we’re here to help you make sense of it all.
Chat with your local Avocado Property Partner today and let’s take the next step together.