Spring Statement March 2026: Property Market Impact

The Chancellor of the Exchequer, Rachel Reeves, has delivered her 2026 Spring Statement. This is the annual follow on from the Autumn Budget and acts as a check-in for the economy, the government’s plans and more.

This year’s edition was a purposefully low-key affair that was not designed to offer major policy shifts. It was a consolidation of recent good news that has given the economy and property market a lift.

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No major changes for the property market

The headline for the property market is that there is no headline. This Spring Statement delivered no major shake-ups for property or in any other areas of the national economy.

The Office for Budget Responsibility confirmed this outlook, saying: “This interim forecast update is little changed from November.”

This is a good thing for property investors. The last three years have delivered challenges and uncertainty, which have affected the property market. However, property investment is a long-term prospect and a period of predictability, stability and calm will lead to long-term growth in both property values and rents.

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Q1 2026 economic context

The Autumn 2025 Budget delivered a range of important changes to the UK economy, and we are now beginning to see the effects. The government confirmed several recent pieces of good economic news in the Spring Statement, which have brightened the country’s outlook for 2026 and beyond:

• Retail sales are rising in the UK
• Exports are up, led by a resurgent manufacturing sector
• The public finances have improved with a record-breaking Budget surplus
• Government borrowing and debt are down

Rachel Reeves said: “Inflation is down, borrowing is down, living standards are up and the economy is growing.”

She also confirmed that national GDP growth forecasts have improved for 2027, 2028 and 2029 – more good news for the future as well as the present.

The better economic news has made it more likely that the Bank of England will deliver more cuts to the base rate of interest over the course of 2026, depending on international factors. If that happens, it will make it cheaper to buy UK investment property using a mortgage in the future.

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The UK property market is growing

The UK property market is also growing alongside the wider economy. 2026 was forecast to be a year of growth, and early signs are that the market is living up to that potential.

Robert Gardner, the Nationwide chief economist, said: “Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year is maintained as expected.”

A new national average house price record was reached in February, and there are even more signs of good news ahead. Research from Zoopla shows that market activity is increasing and buyers can currently access the biggest choice of low-deposit mortgages for four years. 

This is an ideal time to invest in UK buy-to-let property and make the most of the growth forecast in the next four years. Want to learn more about the best property opportunities in the UK? Contact our team of expert consultants today to discover your next investment!