Landlords call for reform over rhetoric as Spring Statement misses key housing opportunities

The Spring Statement has once again stirred debate across the property sector, with landlords, industry leaders and economists pushing back on wealth tax proposals and warning that the Government’s approach to housing is at odds with its growth ambitions. Despite a £2 billion boost for social housing and £600 million for construction training, many believe the measures fall short of what’s needed to address the UK’s chronic housing crisis — and worse, risk piling pressure on the private rented sector (PRS).

Wealth tax proposals trigger alarm among investors
During the post-Statement debate in Parliament, Labour MPs Andy McDonald and Nadia Whittome reignited calls for new wealth taxes — including capital gains tax (CGT) equalisation and a 2% tax on assets over £10 million — as alternatives to disability benefit cuts. Though not officially adopted policy, their proposals raise concerns about the future of property investment and asset ownership in the UK.

Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, didn’t mince words: “In the Spring Statement, no news on wealth taxes can only be good news for savers and investors. However, they can’t afford to get too comfortable… we can expect the debate on the wealth tax to rumble on.”

Coles cautioned that while wealth is already taxed through CGT, inheritance tax and dividend tax, further hikes could have unintended consequences. “It could be particularly painful for those who are asset-rich and cash-poor, who could find themselves with a huge bill and no way of paying it,” she said, adding that any retrospective ‘one-off’ charges could undermine public trust.

George Osborne’s once-proposed council tax bands for higher-value properties, long shelved to avoid a mansion tax backlash, are now back on the radar. But landlords warn that taxing homes more heavily discourages transactions and stifles mobility — effectively freezing the market.

Landlords welcome social housing boost but criticise missed chances
Michael Cook, CEO of Leaders Romans Group, acknowledged the £2bn top-up to the Affordable Homes Programme — which will help deliver 18,000 new homes — as a step in the right direction. However, he noted it doesn’t go far enough.

“Since council housing effectively ceased four decades ago, the private rented sector has fulfilled an important role in preventing homelessness,” said Cook. “With demand for rental properties outpacing supply, it’s good to see the government helping to address this need.”

But Cook pointed to a glaring omission: shared ownership. “Our shared ownership division, SOWN, is busier than ever… yet government announcements consistently fail to mention shared ownership.” He also raised concerns over Stamp Duty and the Renters’ Rights Bill, warning: “We call on the government to consider the financial damage that the Renters’ Rights Bill will cause unless substantially amended — a potential increase in homelessness and the resultant cost to the public purse.”

William Reeve, CEO of Goodlord, echoed this sentiment. “The PRS is creaking under intense pressure,” he said. “We’re going too slowly to hit the Government’s target of 1.5 million new homes this parliament… and anti-market reforms are making things worse.”

He criticised the Renters’ Rights Bill, particularly its bans on overbidding and fixed-term student tenancies: “Both reforms are anti-market and will actually make things harder for tenants, not easier.”

Reforming planning and skills: progress, but not enough
The £600 million pledged for construction skills development was broadly welcomed, with Justin Young, CEO of RICS, describing it as “a decisive investment in the UK’s built environment.”

He continued: “The announcement of an additional £2 billion investment to build 18,000 new social homes is an enormous boost… but with the housing gap continuing to widen, these homes will prove vital.” Young also called for a new GCSE in the Built Environment to channel young talent into the sector.

Cook added that the construction sector’s skills shortage can’t be solved with funding alone. “The answer is two-fold: more vocational degree courses to equip people with the necessary skills for the construction and property sectors; and a greater championing of the non-university route into these roles.”

He argued that this approach would save the Exchequer money and revitalise the development pipeline — a win-win scenario overlooked in the Statement.

Where next for landlords and property investors?
For landlords, the message from the Spring Statement is mixed. While the additional investment in social housing may ease some rental pressures in the long term, ongoing threats of wealth taxes, the looming impact of the Renters’ Rights Bill, and lack of support for ownership innovation like shared equity remain major sticking points.

Landlords continue to be expected to fill the void left by the state’s retreat from housing provision, yet find themselves restricted by legislation that undermines flexibility and profitability.

As policymakers wrestle with how to balance fairness with fiscal pressure, landlords are asking a simple question: if the private sector is to do more of the heavy lifting, shouldn’t it be supported — not penalised — for doing so?

The next few months, especially the Autumn Budget, will prove critical. Will the government recalibrate its approach to unlock property investment, or will it continue to treat landlords as a convenient political target in uncertain economic times? The answer could shape the future of the UK housing market.

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