A leading Midlands-based law firm has welcomed encouraging signals for the housing market from this week’s Spring Statement, including forecasts suggesting house prices are set to rise broadly in line with average incomes over the next five years.
The Office for Budget Responsibility’s forecast, published alongside Chancellor Rachel Reeves’ statement, predicts house prices will rise by just over 2.5% over the forecast period to 2030-31, described as broadly in line with growth in average incomes. For prospective buyers, this suggests prices are unlikely to race ahead of wage growth, potentially making homeownership more accessible over time.
The Chancellor also confirmed that people are forecast to be around £1,000 better off per year by the next election, with six interest rate cuts since the general election helping to ease the cost of borrowing for those on new fixed rate mortgages.
Samantha Ingram, Equity Director at Davisons Law, said: “With conveyancing making up the majority of our work, we pay close attention to anything that affects the property market and our clients’ ability to move. The forecast that house prices will rise broadly in line with incomes is genuinely encouraging and suggests a more stable and accessible market ahead.”
She added: “Combined with continued falls in mortgage rates, we hope this gives people who have been sitting on the fence the confidence to take that next step, whether they are buying for the first time or looking to move.”
