What the Spring 2025 Budget Means for the Property Market and Your Mortgage

For Homebuyers: Glimmers of Positivity Amid a Shifting Market

It’s no secret that mortgage rates are still higher than what many would hope for. While the Bank of England has trimmed the base rate three times since the 2024 election, we’re not yet back to the pre-2022 environment.

Still, the Chancellor’s reaffirmed commitment in the 2025 Spring Budget, to achieving the 2% inflation target by 2027 signals a longer-term push towards economic stability. Combine that with proposed reforms to the planning system and a renewed focus on unlocking housing supply – including the development of so-called “grey belt” land – and there’s cautious optimism, particularly for first-time buyers.

Mortgage Tribe Insight:
If base rates continue to fall and lenders respond with more competitive mortgage products, opportunities may start to open. That said, borrowing capacity and rates will always depend on your individual circumstances and lender criteria. Speaking to a whole-of-market mortgage adviser can give you clarity on what’s achievable today – and what might be worth waiting for.

For Sellers: Short-Term Strength vs Long-Term Supply

Sellers in 2025 may find themselves in a “now or never” moment. With economic growth forecasts downgraded to 1%, buyer confidence could fluctuate. However, low housing stock continues to support strong demand in many areas.

Longer term, with housebuilding expected to reach a 40-year high, competition could increase – particularly in areas benefiting from new infrastructure investment.

Mortgage Tribe Insight:
If you're planning to sell and then buy again, it’s worth having a clear mortgage strategy in place. A solid agreement in principle can help you move faster when the right opportunity comes up – and may make your offer more appealing to sellers. Contact us today to chat through your options.

For Investors: Promises of Growth – But Caution Remains

This Budget talked a big game on growth – with £8.6 billion of new investment and policy changes aimed at unlocking development potential. The planning shake-up is being billed as the most impactful move in terms of economic growth, with zero fiscal cost.

There’s also a boost for employment through a £1 billion return-to-work scheme, which could increase demand for rental property in commuter zones and economic hubs.

Still, with ongoing pressures around taxes, rising costs, and broader market uncertainty, many investors will be weighing their options carefully.

Mortgage Tribe Insight:
Yields, affordability, and mortgage availability remain the key factors. If you’re considering adding to your portfolio – or refinancing an existing asset– speak to us about which buy-to-let mortgage options might align with your goals. Terms and product types can vary widely, depending on the lender and your situation. Speak with us today to understand more.

For Landlords: A Landscape Still in Flux

Landlords continue to feel the squeeze, with higher interest rates, increased regulation, and tighter margins. While the Spring Budget didn’t introduce new tax burdens, it also didn’t offer direct support for private landlords – which could continue to affect supply in the rental sector.

However, reforms around planning and development may create new opportunities to expand or adapt portfolios, particularly as the “Get Britain Building Again” campaign gains traction.

Mortgage Tribe Insight:
If you’re looking at the long game, refinancing or restructuring your portfolio could help increase efficiency and reduce risk. Some landlords are also considering limited company structures or green mortgage incentives, depending on their goals and property types.

A Quick Word on Property Surveys – Get Ahead with Survey Network

As housing supply begins to build momentum, sellers will need to work harder to stand out. Likewise, buyers will want to avoid surprises.

Partnering with trusted surveyors can bring clarity to both sides of the transaction. Whether you're preparing to sell or thinking of purchasing a home this year, a comprehensive property survey helps flag issues early – potentially speeding up the process and reducing the chance of fall-throughs.

We recommend our partners at Survey Network, who offer tailored reports (including Level 2 and 3 Home Surveys, as well as full Building Surveys) to give you confidence in your next move.

Final Thoughts: Fixing the Foundations, Slowly but Surely

The Chancellor’s speech spoke of stability, rebuilding, and “acting in the national interest”. But for anyone involved in the property market, it’s clear the road to recovery is still in progress.

Planning reform, capital investment, and housing targets may lay the groundwork – but how quickly those changes translate into real opportunities will depend on wider economic conditions and lender behaviour.

At Mortgage Tribe, we’re here to help you make sense of it all. Whether you’re looking to buy, sell, invest or remortgage, our team is on hand to guide you through your options – with advice that’s tailored to your goals and circumstances.

Let’s talk – your next move starts here.

There may be a fee for mortgage advice. The precise amount will depend on your circumstances, but it will range from £395 to £500. This will be discussed and agreed with you at the earliest opportunity.

Mortgage Tribe Limited, trading as Mortgage Tribe, is an appointed representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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