If you’ve been watching the property market with a mix of frustration and fatigue – whether you’re saving for your first home, trying to upsize, or simply looking for something more affordable – this week brought a glimmer of hope.
On Wednesday, Chancellor Rachel Reeves delivered her first Spending Review to Parliament.
Yes, it was full of the usual political language, but behind the statements was something substantial: the biggest investment in social and affordable housing in half a century.
For years now, the housing conversation in the UK has been stuck in a cycle. High demand. Low supply. Stagnant wages. Rising rents. For buyers and renters alike, it’s been a grind – with few signs of structural change.
But Reeves seems to be signalling a shift.
“We are renewing Britain – but I know that too many people in too many parts of our country are yet to feel it,” she told MPs in the Commons.
It’s hard not to relate. Whether you’re trying to get on the ladder or find a suitable family home without breaking the bank, the housing market often feels stacked against ordinary people.
But Reeves’ plan includes specific funding for homes at social rent, as well as broader support for affordable and mixed-tenure developments.
That matters. Because social and affordable housing aren’t just safety nets – they’re vital levers for restoring balance to a market that’s been allowed to drift far from the needs of everyday earners.
UNLOCKING NEW HOMES
Another key headline from the review was Reeves’ decision to loosen infrastructure investment rules and release £10 billion for housing-related financial investments, including through Homes England.
The aim is to attract more private sector funding into regeneration projects and new-build developments – the kind of large-scale building activity that could finally shift the dial on supply.
She put it simply: “This is about building not just homes, but stronger communities and opportunities.”
The early reactions from across the housing and mortgage industry have been largely positive – though many stress the importance of delivery.
Alex Slater, Rightmove’s housebuilding expert, called it “a really positive boost for the housebuilding industry,” and emphasised the need to build homes where they’re most needed.
While Tony Hall from Saffron Building Society welcomed the long-term funding commitment too, especially as Labour’s pledge to build 1.5 million homes still looks ambitious.
“Funding is only part of the equation,” he said. “The planning system remains one of the biggest blockers to delivery… If we’re serious about hitting the 1.5 million homes target, we need to look at all options on the table.”
That includes ideas like self- and custom-builds – which could give more people the chance to shape their home and stay in the area they know – if the red tape can be reduced.
WHAT DOES THAT MEAN FOR YOU
So, what does all this mean if you’re trying to move?
If you’re a first-time buyer, the increased supply of affordable homes – and a shift toward long-term investment in housing – could begin to ease pressure on prices over time. It might not help overnight, but it’s a start.
If you’re renting, social rent expansion could take some heat out of the private rental market, especially in high-demand areas.
And if you’re upsizing or downsizing, increased housing activity often has a knock-on effect, creating more fluidity and choice across price brackets.
Of course, much depends on what actually gets delivered – and how quickly. But after years of underinvestment and market stagnation, this feels like a serious policy reset.
So while we’re not popping champagne corks just yet, it’s fair to say that the Reeves Spending Review might just be the beginning of something different – a long overdue effort to bring the housing market back in line with what real people need.
Remember, whether you’re buying, selling or just planning our next move, smart choices start with expert advice – speak to your mortgage adviser to get the best for your financial future.
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