Welcome back to another week of Stentons Property blogs! This week we’ll be delving into the UK spending review of 2025 and how this can affect the property market.

The UK Spending Review is always a moment that ripples across the economy, but this year’s 2025 review feels particularly consequential for anyone involved in property—whether you're a first-time buyer, a landlord, or a developer.

1. Housing Investment: Promises Made, But Will They Stick?

The headline: the government has pledged £6.8 billion for new affordable housing over the next three years. On paper, that's good news. But those of us on the ground know the challenge isn't just funding—it's delivery. Planning bottlenecks, skills shortages, and under-resourced local authorities are still slowing progress. If this money is to have real impact, we need policy joined up with execution.

For buyers, particularly those priced out of the market, this could offer future hope—but not immediate relief. For developers, especially housing associations, the bigger question is whether this funding will unlock stalled projects or simply be tied up in red tape.

2. Infrastructure and Regional Growth

The review includes a continuation of the Levelling Up Fund and a fresh commitment to devolved budgets. However, with major rail projects scaled back in recent years, it’s clear that regional connectivity still isn’t getting the consistent backing it needs.

Why does this matter for property? Infrastructure is often the bedrock of property value. Places like Leeds, Bradford, and Sheffield have seen spikes in demand linked to improved connectivity. Without consistent investment, we risk uneven growth and missed opportunities for regeneration.

3. Taxation and Landlords: The Quiet Squeeze Continues

No major new tax changes for landlords were announced, but the freeze on Capital Gains Tax thresholds and the continued phasing out of mortgage interest relief means the pressure is still very much on.

The government seems to be betting on institutional investment to fill the gap left by private landlords, but that shift won’t happen overnight. In the meantime, expect more small landlords to exit, which could put further pressure on rental supply.

4. Planning Reform: Still a Missing Piece

If there was one thing many of us hoped to hear more about, it was planning reform. The review made passing mention of increased digitisation and resourcing for planning departments, but no sweeping changes. The planning system remains one of the biggest barriers to growth in housing delivery, and until it is meaningfully addressed, even generous funding may fall short of its potential.

Final Thoughts

The 2025 Spending Review offers some cautiously positive signals for the property market—but it also reveals some missed chances. As always, the devil will be in the delivery. For property professionals and investors, the best approach is to stay alert, be flexible, and factor in long-term resilience when making decisions.

If you’d like to discuss how any of these changes might affect your portfolio or next move, we're always happy for a chat. As ever, informed decisions are the best kind!

Until next time, happy house hunting!