Spring Budget 2024 - Missed opportunities for the mortgage market with Amanda Symes-Reeves

By Jennifer Harrison, Content Lead

With a general election looming later in the year, the eyes of the nation – and potential voters – were on Westminster this Wednesday as Chancellor Jeremy Hunt revealed the Spring Budget. The headline announcements included a 2p cut to National Insurance and measures to support families on the lowest income, which of course were welcomed by many. However, with very little put in place to help the UK’s ongoing housing crisis, the response from the housing sector has largely been one of disappointment and frustration at the lack of action taken by the Chancellor.  

I sat down with Amanda Symes-Reeves, Product Manager at MPowered Mortgages, to get her take on what she feels was missed from the Spring Budget.  

What were your overall thoughts on the Spring Budget? 

I felt it was a very cautious Spring Budget which, truthfully, was not unexpected. Nothing came as a surprise. Almost every new policy had been rumoured or teased to the press prior to the statement and, once again, very little was revealed to offer long-term support to a struggling housing sector. There was no action taken to boost housing supply and fix the imbalance between supply and demand, and nothing to support first-time buyers who simply can’t get on the property ladder in the current economic climate.   

However, do I believe we will head into a general election without hearing a housing manifesto? No. Do I think the Conservatives are holding back some bolder moves? Yes. Will it be too little too late? Possibly.  

What do you think Hunt should have included in the Spring Budget to support the housing sector? 

Having reflected on the budget since Wednesday, I do believe there was a lot of missed opportunities – too many to go into detail on – but there are a few key elements I would really like to have seen prioritised. 

Stamp Duty Reform 

So many of us were hoping for some form of Stamp Duty Relief for first-time buyers, home movers and downsizers. SDLT is one of the largest barriers people face when purchasing a property and the fact this was left unaddressed is a huge shame. This would have given a much-needed boost to the property market as we saw back in 2020 and 2021. 

Increasing Lifetime ISA Limits 

LISAs are an incredibly powerful product for those aged 18-39, with the Government providing a 25% boost to savings to those buying their first home. However, the property price limit is £450,000 and this has not increased since it was launched in April 2017, despite the average house price rising by 30%. Anyone looking to purchase a home over that limit is fined 6.25% of their own savings if they choose to withdraw their LISA funds. I, for one, would really like that limit increased as it would be a huge help to first-time buyers, especially those living in London or the South-East, as well as seeing the withdrawal penalty for those purchasing a first-time property above any limit reduced to 20% - at least that way savers would get back what they put in. 

Prioritising Affordable Housing 

A small commitment to building 8,000 new homes in Barking Riverside and Canary Wharf is simply not enough when it comes to creating accessible new builds. This should have been a priority for the Chancellor in this Budget, and I was very disappointed to see little done to support the development of affordable housing.  

The Implementation of a Housing Strategy Committee 

Housing plays a critical role in a strong national and local economy. Having good housing that people can afford close to work, education and local services acts as a springboard for thriving communities. But despite this, there are 8.5 million people in England who cannot access the housing they need. These major issues need to addressed, and cross-party support is essential if we want to fix this huge problem. With 16 housing ministers in the last 13 years, it is no real shock that no enduring plan to solve housing problems is in place. It is my belief that without a long-term plan, and a housing minister who truly cares about housing, a struggling housing sector will be an ongoing problem.  

Creating a housing strategy committee, modelled on the existing climate change committee, who will provide annual progress reports and hold the Government to account would be a brilliant first step towards long-term reform. 

To keep up to date with all things MPowered visit our Content Hub or follow our social media channels. If you’re after more industry news updates, then join us for our next ‘Mortgage News Live’ webinar, streamed live weekly on LinkedIn.  

All information contained on this blog is for general information use only. It does not provide mortgage advice and should not be construed as being mortgage advice, which can be provided by your mortgage broker and advisor only.