Surprise surprise: the mortgage market, the problem child for the government, has been overlooked again.

Ahead of the Spring Statement industry leaders had called for clarity and direction to the UK housing and mortgage markets. Yet, for many industry leaders, it proved underwhelming, offering little in the way of new initiatives or support for the sector.

While the Chancellor highlighted record housebuilding forecasts, concerns remain over affordability, planning bottlenecks, and market stability. The government would do well to remember that neglecting a problem child doesn’t make them disappear – it might just ensure they become a bigger problem later on.

Housebuilding and affordability: ambitious targets, uncertain outcomes

Chancellor Rachel Reeves’ Statement celebrated that the UK is on course to deliver 1.3 million homes by the end of this Parliament – a near 40-year high. While this sounds promising, John Phillips, CEO of Spicerhaart and Just Mortgages, warns that it remains a “big if.”

He welcomed additional funding for affordable housing and investment in construction training but noted that these measures had been previously announced.

“Today’s statement really offered nothing new and once again demonstrates the clear disconnect within government between supply-side measures and tangible action and support to actually address affordability challenges faced by potential buyers in today’s housing market,” he said.

Without new demand-side policies – such as equity loan schemes or an expansion of Shared Ownership – prospective buyers continue to struggle. Phillips argued that while boosting supply is critical, the housing market also needs immediate interventions to help people buy. Without this, he warned, the economy risks losing out on the vital stimulus that homebuying provides. It is not unlike watching parents who praise their child’s potential but fail to provide the resources needed for them to succeed.

Market stability and stamp duty uncertainty

The looming Stamp Duty changes in April 2025 cast a shadow over the market.

Matt Harrison, commercial director at finova Broker, expressed disappointment that no new measures were introduced to mitigate the impact.

“With the tax-free threshold set to drop, we saw a rush of buyers trying to complete transactions before the deadline, which is likely to be followed by a sharp slowdown later in the year,” he noted.

This cyclical pattern of market peaks and troughs is becoming all too familiar, he argued, and does little to promote long-term stability.

Any good parent knows you don’t just deal with problems when they explode into full blown crises, the government’s approach must become proactive over reactive.

A more measured approach, with policies aimed at sustaining steady growth rather than fuelling short-term spikes, would have been welcomed.

Without intervention, affordability challenges will persist, potentially pricing many buyers out of the market.

Planning and construction: is reform enough?

One of the themes of the Spring Statement was the government’s commitment to revising the National Planning Policy Framework (NPPF) to help deliver 1.3 million new homes.

However, Damien Druce, commercial director at Black & White Bridging, questioned whether planning policies are the real obstacle.

“Independent data suggests otherwise. The number of planning applications submitted in the year to September 2024 was the lowest since records began in 2005.

“Housebuilders, facing high material costs, a weak economy, and low consumer confidence, are simply not bringing forward new projects. So, how will vague and undefined changes to planning policy frameworks help?” he asked.

Like a parent blaming bad behaviour on the wrong influences, the government appears fixated on planning reform when deeper economic factors have greatly influenced this stagnation. With UK construction activity at its steepest decline since May 2020, Druce called for stronger financial incentives for SME developers. Without targeted support, he warned, the government’s ambitious targets risk collapse.

Later-life borrowers: the need for innovation

For the later life segment of the market, the lack of policy action was equally frustrating. Simon Webb, managing director of capital markets and finance at LiveMore, lamented that rigid affordability criteria, a lack of mortgage flexibility, and a tax system that discourages downsizing continue to hinder mid-to-later-life borrowers.

“The Spring Statement may have been a missed opportunity, but that doesn’t mean we stand still,” he said, urging the industry to lead the way in modernising lending criteria, investing in digital infrastructure, and expanding mortgage flexibility.

Webb called for greater collaboration between lenders, brokers, and policymakers to develop new mortgage products that reflect later-life incomes and financial realities.

Digital transformation

The government’s failure to acknowledge the role of digital transformation in the property market was another key criticism. Maria Harris, chair of the Open Property Data Association, described it as a “missed opportunity” to support innovation in one of the UK’s largest economic sectors.

“The benefits are clear: faster completions, fewer fall-throughs, and a more resilient, modern property ecosystem. Yet the government continues to overlook the potential of digitisation,” she said.

Echoing this sentiment, Mark Tosetti, CEO of Conveyancing Alliance (CAL), argued that the property industry must take the lead in driving digital adoption.

“Investing in our platforms to drive efficiency, quality, and turnaround times can help break down blockers across the industry,” he stated. Out of the neglect, these innovations could show the industry standing up for itself and pushing forward with its own solutions.

Education and skills

Beyond housing and mortgages, there was broader disappointment over the lack of investment in skills development.

Nick Jones, mortgage sales and marketing director at Access Financial Services, criticised the Chancellor for failing to prioritise education and training.

“The wider economy would have benefited from a greater emphasis on education and skills. It’s the only way to support long-term growth,” he said.

Jones highlighted his company’s success in running the Access Academy, which saw revenues grow by 46% in 2024 due to its focus on upskilling mortgage and protection advisers. He argued that a similar commitment at a national level could provide a much-needed boost to the UK economy.

A sector forced to lead its own recovery

The consensus across the mortgage and housing sectors is that the Spring Statement 2025 did little to address the industry’s most pressing concerns. Whether it was affordability, planning reform, later-life lending, digital transformation, or skills investment, the message was clear: the government’s lack of decisive action means the industry must take the lead.

Like an exasperated child realising that support won’t come from above, the mortgage and property sector now faces the task of raising itself up.

While some welcome commitments were reiterated, the absence of fresh policies means that lenders, brokers, conveyancer, developers, and tech firms must drive their own solutions.

As Tosetti put it: “This was not a defining Statement for the Chancellor, but that doesn’t stop it being one for the sector.”