Dave Seed, Managing Director of Qube Residential has commented on the Chancellor’s Spring Statement.
“Despite the government’s commitment to a single budget each year to provide much-needed stability, today’s spring statement announced by Rachel Reeves, while not a proper budget, highlights the government’s continuous promise of growth, even though it aims to achieve this by making spending cuts and tax increases. The public spending cuts announced today will almost certainly impact the broader economy, further slowing the already sluggish housing market as confidence continues to decline. Uncertainty discourages landlords and even developers from expanding portfolios, limiting the rental housing stock. That said, I support Rachel Reeves’ announcement of an additional £2bn for affordable housing. This funding is set to deliver 18,000 social homes, though it’s undoubtedly aimed at softening the blow of today’s spending cuts. However, these sudden cuts could still discourage both current and prospective investors, impacting long-term housing supply and market stability. Developers and landlords may find some comfort in this pro-growth stance, but many will likely remain hesitant to make any major moves after today’s announcement which was meant to provide reassurance.”
