‘We would like to have seen more direct support – whether through enhanced stamp duty relief for first-time buyers, incentives for developers facing rising construction costs or measures to improve viability on challenging sites.’
Labour has made housing a top priority since taking office, pledging to deliver 1.5 million new homes before the next general election and help more people onto the property ladder.
Chancellor Rachel Reeves opened her autumn budget on Wednesday by highlighting the government’s drive to ‘overhaul the planning system to get Britain building’, but the measures that followed offered limited substance for the housing sector.
From April 2028, homes valued at over £2m will face new ‘mansion tax’, while widely speculated changes to stamp duty were not introduced. Landlords will also see costs rise, with a 2% surcharge added to income tax on rental earnings.
Since the budget was announced, housing experts have shared their reactions, which can be read below.
John Wickenden, research manager at Housemark
‘The budget offers some welcome help for households, but it does little to address the deeper pressures shaping the housing sector. Housemark’s latest data shows that landlords are working hard to improve services despite financial constraints. Tenant satisfaction has held above 75% for several months and repairs performance is also strengthening, with close to 90% of jobs completed on time. These improvements are hard won and they rely on organisations being able to plan and invest with confidence.
‘At the same time voids performance is improving and arrears are falling, which suggests that providers are stabilising services and supporting residents effectively. Yet this progress sits against a backdrop of rising expectations on safety, damp and mould, customer experience, energy performance and data requirements. These expectations have grown year-on-year without the corresponding increase in long-term funding needed to deliver them. The sector has absorbed a decade of stretch and the Budget does not alter that reality.
‘The confirmation of the 10-year rent settlement at CPI plus one percent gives landlords a clearer planning horizon and that is welcome. But a rent framework alone does not resolve the mismatch between what providers are required to deliver and the resources available to deliver it. The decision on convergence rules in January will be critical and landlords will need clarity that supports both investment and affordability.
Mark Hall-Digweed, partner at Carter Jonas
‘[The] budget was billed as a defining moment for economic growth. On first impressions, it appears to have been a constructive day for infrastructure. There were ample mentions of infrastructure in the budget report – no fewer than 76 uses of the word ‘infrastructure’ in fact. Much of it was retrospective but there were several positives too.
‘We had hoped for more commitment to the funding of new towns in this budget. New towns need a commitment to infrastructure from day one, and this appeared to be an omission. Overall, the new towns taskforce estimates that its recommended locations could contribute at least 300,000 new homes in the coming years, but they will not be delivered successfully without the utilities, transport links or energy capacity needed to support them.
‘This government staked much of its early political capital on making the case that simplifying infrastructure delivery and attracting investment into schemes would underpin economic growth. Infrastructure remains one of the strongest levers available to drive that growth, as the chancellor appeared to agree in her introduction to the budget.
‘But there is a risk that the political capital spent so far has not been enough. Developers and investors alike want the government to go further and faster, particularly in planning reform and strategic delivery. The devolution of £13bn in flexible funding for seven mayors across England is a step in the right direction, but more will be needed to unlock delivery at scale.’
Richard Beresford, chief executive of the National Federation of Builders (NFB)
‘Construction feared the worst from the budget, particularly on landfill tax. While we were heard on this proposal, lower rate landfill tax, or ‘muckaway’, will still more than double in price. Furthermore, businesses who employ directly, take on apprentices, or who choose to decarbonise their vehicle fleets, will be throwing their arms up in frustration.
‘There was nothing on stamp duty land tax rebates for the most efficient homes, no cancelling of the Building Safety Levy and not a murmur on Help to Buy, all of which means industry will remain in the mud.
‘Death by a thousand taxes has already killed off many businesses, with insolvency rates still high within the construction industry.’
Neil Louth, chief executive officer for The Acorn Group
‘After the delay of the budget to 26th November and all the leaks, there was an expectation of significant change. However, it appears to be quite the opposite; any substantial measures are not due to take effect until 2028 and 2029, with very little to stimulate the economy in the near term.
‘The property industry has been calling out for reinvention – reform or abolishment of stamp duty, first-time buyer incentives and a real driver for homeownership. This budget has clearly not delivered on those fronts. Stamp Duty remains an antiquated tax that stifles movement and slows economic momentum. When transactions pick up, everyone – from removal firms, mortgage brokers to solicitors – feels the benefit. That’s why we continue to argue that meaningful, structural reform is long overdue.’
Dr David Crosthwaite, chief economist at BCIS
‘There’s little in this budget for the construction sector.
‘Plus points include £900m additional capital for the Lower Thames Crossing scheme, free training for under-25 apprentices for SMEs, and steadfastness on Spending Review investments in infrastructure and housing.
‘Yet the chancellor’s celebration of the government’s planning overhaul to ‘get Britain building’ seemed misplaced.
‘Construction output and housebuilding data tell another story – one of slow demand and a shrinking workforce. Will this government ever learn from the unintended consequences of its policies?’
Image: C Dustin/UnSplash
In related news:
Leave a Reply