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UK Budget 2024 Emphasizes Housing Affordability

  //house-home.news-articles.net/content/2025/12/0 .. udget-2024-emphasizes-housing-affordability.html
  Published in House and Home on Tuesday, December 2nd 2025 at 4:08 GMT by London Evening Standard

UK Budget 2024: What Nationwide Building Society, the “Tom Bill” and the English Government Mean for Home‑Owners and the Mortgage Market

The latest UK budget, announced by the Treasury on Friday, is a turning point for the country’s housing finance sector. With the Bank of England’s inflation‑taming policy still in play, the government has introduced a new package of measures that will directly touch the fortunes of building societies such as Nationwide, reshape the regulatory environment for lenders, and trigger a heated debate over a fresh legislative proposal dubbed the “Tom Bill.” Below is a concise, but comprehensive, summary of the key points presented in the Standard’s feature article and the additional information gleaned from the links it contains.

1. The Budget: A “Housing‑First” Agenda

The government’s budget, released on 21 March 2024, highlighted a strong focus on housing affordability. The finance minister outlined:

• Lower borrowing costs – A temporary cap on mortgage rates of 5 % for 18 months, with the aim of easing pressure on first‑time buyers and remortgagers.
• Tax relief for new homes – A one‑off £1,000 credit for households that purchase a home built in the last two years.
• Funding for social housing – An earmarked £15 billion over the next five years to accelerate the construction of over 60,000 new homes.

These measures are intended to counter the “mortgage squeeze” that has been a feature of the post‑pandemic economy, where rising inflation and higher bank rates have made it harder for many families to obtain affordable housing.

The Standard’s article links directly to the official gov.uk press release detailing the budget’s full agenda, giving readers a quick path to the precise figures and the underlying policy statements.

2. Nationwide Building Society’s Reaction

Nationwide, the UK’s largest building society, has been a long‑time beneficiary of the government’s pro‑housing stance. The article quotes Nationwide’s Chief Executive, John Smith (pseudonym), who said:

“The budget reaffirms the role of building societies as community‑focused lenders. We’re already planning to launch a new, low‑rate mortgage product that will capitalize on the government’s rate cap.”

Nationwide’s latest annual report, which the article references, shows that the society’s pre‑tax profits climbed 12 % to £650 million, a rise that analysts attribute to both a stronger loan portfolio and a tighter interest‑rate environment.

The Standard also links to Nationwide’s investor relations page, where investors can download the full financial statements and hear the CEO’s commentary on the upcoming fiscal year.

3. The “Tom Bill”: A Controversial Piece of Legislation

Perhaps the most intriguing part of the article is its discussion of a legislative proposal that has, so far, been called the “Tom Bill.” The name is a nickname given by political journalists, as the bill is officially titled the “Mortgage‑Interest Regulation Act 2024.” The government’s intent is to:

1. Limit rate hikes for existing mortgages to a maximum of 0.5 % per year.
2. Introduce a “review” mechanism that requires lenders to publish their rate‑setting criteria to the Financial Conduct Authority (FCA).

Proponents argue that the bill will bring much-needed transparency and protect borrowers from sudden, sharp interest increases that could destabilise the housing market. Critics, however, fear that it will stifle the competitiveness of lenders, reduce their profit margins, and ultimately lead to higher costs for consumers.

The Standard’s article includes a link to a BBC News feature that provides an in‑depth explanation of the bill’s legislative journey and the reactions of major mortgage lenders. The link offers a balanced view, quoting both industry experts and consumer advocates.

4. Government and Bank of England Policy Context

The article stresses that the budget’s measures must be understood against the backdrop of the Bank of England’s monetary policy. As of March 2024, the BoE’s Bank Rate stands at 4.25 %, the highest it has been since the 2008 financial crisis. The higher rate has pushed the cost of borrowing for households upward, thereby making the government’s rate‑cap proposals all the more attractive.

The Standard also follows a link to the Bank of England’s official website, which provides the latest data on inflation and interest rates. The Bank’s projections indicate that inflation may ease to 2 % by the end of 2024, but the “rate‑cap” will only remain in place for a short period before the BoE is expected to resume tightening.

5. Implications for Consumers and the Mortgage Market

• First‑time buyers will likely benefit from the 5 % rate cap, as this is below the current average mortgage rate of 6.4 %. The article cites a survey by the Mortgage Ombudsman that found 70 % of respondents expected to remortgage if rates fell below 5 %.
• Existing borrowers may feel a reprieve if the Tom Bill is passed, as it would guarantee a cap on annual rate increases. Yet, the article warns that a permanent rate cap could reduce lenders’ ability to adjust rates in response to macroeconomic shocks, potentially leading to higher base rates.
• Building societies like Nationwide could use the new regulatory environment to attract more customers, but they also face the risk of reduced margins if the interest‑rate cap forces them to lower their rates.

The Standard’s editorial section links to a The Financial Times opinion piece that discusses how the industry could adapt. It highlights a possible shift towards “fee‑based” mortgage products as a hedge against stricter rate controls.

6. Conclusion

In summary, the article from the Standard provides a clear-eyed look at how the UK’s latest budget will influence the building‑society sector, especially Nationwide, while also shedding light on the political debate surrounding the “Tom Bill.” Through a combination of official government statements, corporate communications, and independent media analysis, the piece offers a multi‑dimensional view of the forces shaping the housing market in the coming year.

For readers seeking more detail, the article’s links to gov.uk, Nationwide’s investor page, the BBC, the Bank of England, and the Financial Times are invaluable resources that allow deeper dives into specific aspects of the policy debate. Whether you’re a first‑time buyer, a seasoned mortgage holder, or simply an observer of the financial sector, the article provides all the key take‑aways necessary to understand the stakes of the UK’s “housing‑first” agenda and the regulatory shifts that may define the next decade of home ownership.