Was the Spring Statement a “missed opportunity”?

The government delivered its Spring Statement earlier this month, and industry bodies say it missed an opportunity to give the private rented sector a boost.

Like last year, politicians trailed it as an update on their economic forecasts, not a platform to announce new policies. As such, there were no major new announcements.

But according to Propertymark in the wake of the statement, the sector “needs more ambitious investment to ensure that the UK's housing needs are met”. They warn that high demand and low supply in the private rented sector is pushing rents up, while tax changes are reducing investment. A business-as-usual Spring Statement means that any investment will now have to wait until the Budget towards the end of the year.

It also means that the changes to property income tax announced at the 2025 Budget are still going ahead unchanged. From April 2027, landlords will pay an extra 2% income tax on their rental income.

The forecast update is good for landlords – but is it already out of date?

While there weren’t any policy announcements, the economic forecasts from the Office for Budget Responsibility looked quite positive for the private rented sector.  

• Inflation is now expected to fall to its 2% target in the second half of 2026, ahead of the previous forecast of November. That would allow the Bank of England to cut interest rates, making it cheaper to invest in property.

• House prices are expected to rise between 2.4% and 2.9% each year between now and 2030, more or less in line with average incomes.

• Household disposable income is expected to rise faster than inflation, although the real terms gain is small: less than 1% per year. Even so, the fact that incomes are rising faster than costs will make it easier for tenants to afford rent.

Since 3 March, though, global uncertainty has pushed energy prices up, which is expected to drive inflation up and growth down – and in turn, could prevent the Bank of England from cutting interest rates. While they’re positive, the Spring Statement numbers could already be out of date.