Chancellor Rachel Reeves has delivered her Spring Statement in Parliament — but what does it mean for the Thetford property market?
The Spring Statement (sometimes called the mini-budget) is designed to update the country on the economy, based on the latest forecasts from the Office for Budget Responsibility (OBR). However, this year’s announcement carried extra weight. With a reported £22 billion shortfall, a sluggish economy and global uncertainty caused by new US tariffs, expectations were high that the Chancellor might raise taxes or cut spending.
So, what actually happened?
Rachel Reeves opened by confirming there would be no new tax rises. She outlined a series of “savings measures” and announced an increase in defence spending but didn’t reverse the Employer’s National Insurance rise announced last autumn.
That rise — alongside a higher National Living Wage — has drawn criticism from employers, who warn it could put pressure on job creation. But the Chancellor made no mention of changing course, meaning both measures will take effect as planned next week.
Stamp Duty disappointment
There was also speculation that Reeves might extend or replace the temporary Stamp Duty cut introduced in 2022, which is due to end on Monday. That didn’t happen.
As a result, Stamp Duty rates will return to pre-2022 levels, hitting first-time buyers hardest as their larger exemption thresholds disappear. While it’s not the news many homebuyers hoped for, the market will likely adjust in the months ahead.
Economic growth and housing plans
The OBR forecasts modest GDP growth of under 2% a year over the next few years. Reeves said the typical household will be around £500 a year better off as inflation continues to fall.
On housing, she promised that the new Planning and Infrastructure Bill will boost homebuilding to a 40-year high, contributing an estimated 0.6% to GDP once fully implemented. However, the five-year housebuilding target was revised from 1.5 million new homes down to 1.3 million.
What could this mean for the property market?
Slower economic growth may dampen sentiment, but the renewed focus on housing supply could help stabilise the market. The end of the Stamp Duty cut will create short-term disruption, yet most analysts expect buyers and sellers to adapt quickly.
Andrew Groocock, COO at Knight Frank, put it well:
“The key question will be how many transactions hold together in April once the deadline has passed and how open buyers and sellers are to price renegotiations. There may be a bit of disruption, but in my experience, buyers are quick to adapt once changes have been made.”
Interest rates remain key
While not directly addressed in the Statement, interest rates will continue to shape buyer behaviour. The Bank of England kept rates unchanged at its March meeting, but a small fall in inflation earlier that day (down 0.2%) offered a glimmer of optimism.
Governor Andrew Bailey said he still expects rates to follow “a gradually declining path”, and most experts now anticipate at least two base rate cuts of 0.25% this year — possibly more. If that happens, mortgage costs should ease, supporting affordability and buyer confidence.
The outlook for Thetford
For local sellers, the message is one of calm rather than concern. The market is expected to remain steady, with well-priced homes continuing to attract plenty of interest.
If you’re considering selling your home in Thetford, we can provide up-to-date advice on pricing, presentation and marketing to help you move with confidence.
Call or message us today to arrange a free valuation and chat about your next steps.
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Article by Andrew Overman | Partner | Location Location East
