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The Impact of the Spring Statement 2025 on Homeownership

  • Mar 28, 2025
  • 3 min read
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How recent policy changes could affect your mortgage plans.

Chancellor Rachel Reeves’ Spring Statement 2025 has introduced key changes that will shape the UK housing and mortgage market for years to come. With ambitious housebuilding targets, mortgage rate forecasts, and stamp duty adjustments, homeowners and buyers need to stay informed to make smart financial decisions.

At Endurance Mortgages, we’re here to help you navigate these changes. Here’s what you need to know:

More Homes, But Will They Be More Affordable?

The government has set a bold target to build 1.5 million new homes by 2030 - the highest construction level in 40 years. If successful, this could increase quarterly property sales from 290,000 in late 2024 to 370,000 by 2029, adding an estimated £6.8 billion to the UK economy.

To support this, the government is making several key investments:

  • Planning System Changes – The Office for Budget Responsibility (OBR) predicts that recent planning reforms will lead to 170,000 extra homes being built over the next five years.

  • Training for Construction Workers – A £625 million investment over four years will fund training programs to help address the skills shortage in the construction sector.

  • Affordable Housing Boost – A £2 billion investment will deliver up to 18,000 new social and affordable homes, aimed at supporting first-time buyers and low-income families.

While these initiatives aim to increase supply, the real question is whether they will make homeownership more affordable in a market still facing high demand and rising costs.

Mortgage Interest Rates: Where Are They Headed?

For homeowners and buyers, mortgage rates remain a key concern. The OBR forecasts that the average interest rate on existing mortgage stock will rise from around 3.7% in 2024 to a peak of 4.7% in 2028, remaining at that level until 2030.

This means borrowing costs could stay higher for longer than previously expected, impacting those looking to secure a new mortgage or remortgage in the coming years.

With this in mind, homeowners should consider locking in competitive rates now, while first-time buyers may need to adjust their budgets to account for higher repayments.

Stamp Duty Land Tax (SDLT) is Changing – What Does That Mean for You?

One of the biggest updates from the Spring Statement is the return of pre-pandemic Stamp Duty Land Tax (SDLT) thresholds. From March 31, 2025, the nil-rate threshold will drop from £250,000 back to £125,000, meaning buyers will pay more in upfront costs.

If you're in the process of buying a home, these changes could impact your budget. With stamp duty now applying to a larger portion of property purchases, securing the right mortgage is more important than ever. Whether you're a first-time buyer or moving home, we can help you navigate these changes and find the right mortgage options available.

What the Industry is Saying

While the planning reforms and housing investment are positive steps, industry experts warn that execution will be crucial.

Paresh Raja, CEO of Market Financial Solutions, notes that although house prices are rising, inflation is falling, and base rate cuts are expected in the future. He highlights that government support for homebuyers and investors will be key in sustaining market confidence.

How Endurance Mortgages Can Help

With so many changes on the horizon, expert advice is more important than ever. At Endurance Mortgages, we’re here to help you:

  • Find the right mortgage deals – Whether you’re a first-time buyer, remortgaging, or investing in property, we’ll help you secure a competitive rate.

  • Understand market changes – We keep you informed about interest rate movements, stamp duty adjustments, and new mortgage opportunities.

  • Maximise financial benefits – From Green Mortgages to fixed-rate deals, we help you find solutions that make homeownership more affordable.

If you’re considering buying, selling, or remortgaging, get in touch with us today to discuss your options.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.

Endurance Mortgages Ltd is an appointed representative of The Right Mortgage Ltd, which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 15060351. Registered Address: Worting House, Church Lane, Basingstoke, Hampshire RG23 8PX.

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Endurance Mortgages Limited is an Appointed Representative of BrokerSync Ltd, which is authorised and regulated by the Financial Conduct Authority (1031981). There may be a fee for Mortgage Advice. The precise amount will depend upon your circumstances and will be agreed upon following your initial meeting. Equity Release, Investments, Pensions, Wills, Trusts, PMI and Estate Planning will be referred to our authorised third-party providers. Endurance Mortgages Limited and BrokerSync Ltd are not responsible for any advice received from the third-party providers. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Conveyancing, Wills, and some forms of Buy-to-let Mortgages and Commercial Mortgages are not regulated by the Financial Conduct Authority. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured against it. The guidance and/or advice contained within this website is subject to the UK regulatory regime and is, therefore, primarily targeted at consumers based in the UK. Company Registration 15060351.

Registered in England and Wales. Financial Conduct Authority No. 1005981

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