UK Housing News
Spring Statement: Chancellor Fails to Tackle the UK's Housing Affordability Crisis
BBC
David Hannah, Group Chairman of Cornerstone Tax, the UK's leading stamp duty advisory, discusses how the government reforms are not working
Chancellor Rachel Reeves has delivered the government's Spring Statement, pledging continued reforms to homebuilding planning in the UK. However, her reforms fail to address the UK's housing affordability crisis according to David Hannah, Group Chairman of Cornerstone Tax.
“Following the Spring Statement, the Chancellor has missed yet another opportunity to tackle the UK's worsening housing affordability crisis. The UK already has the highest property taxes of any advanced economy, with the property tax burden at 3.7% of GDP - and this is set to rise further from April. Additionally, the Chancellor admitted that only 1.3 million homes will be built in the current Parliament, rather than the 1.5 million she promised, highlighting that her reforms are not working. The decision, therefore, not to reverse the government’s reforms to stamp duty, the second home surcharge, or reintroduce multiple dwellings relief is a significant oversight.
“This constant failure to act will only push rents higher, reduce housing supply, and worsen the affordability crisis, ultimately shattering the dream of homeownership for thousands of Brits. We are already seeing the impact, with 14% of Brits turning to short-term loans or emergency credit just to cover unexpected stamp duty bills. Looking at London alone, it’s clear that homeownership remains out of reach for many, with the average London home costing 11 times the median salary - well beyond the affordability threshold of five times earnings.
“New policies were urgently needed to promote affordability, improve accessibility, and support businesses building in Britain. The government should have listened to property firms and industry stakeholders to address this critical issue. Without action, there is no reason to believe this crisis won’t continue to wreak havoc for years to come.
David Hannah, Group Chairman
