The British Property Federation has called on the Chancellor to deliver a series of tax reforms and prioritise regulatory stability in the Autumn Budget to confront the ongoing viability crisis impacting development across all asset classes.

The BPF highlighted in its submission to HM Treasury that the real estate industry contributes £110bn annually to the UK economy and supports one in 13 of all jobs in the UK.

Melanie Leech, Chief Executive of the BPF, said: “The data is stark. Without targeted interventions from Government to address the development viability crisis key Government priorities such as 1.5 million new homes and the Industrial Strategy will not be delivered.  

“As long-term investors in communities across the country, our members want to harness domestic and global capital to support the delivery of New Towns at pace; and invest in more productive workspaces, new homes for all stages of life, and the buildings and public spaces that underpin modern, cohesive communities. Yet despite welcome moves to reform the planning system, investor sentiment remains fragile, as evidenced by the collapse in construction activity across the UK. There are simply too many layers of regulation, tax and levies on new development which is at odds with the commitment to ‘back the builders’.  

“We urge the Chancellor not to underestimate the cost of inaction – the Government will not raise any taxes and levies on development that doesn’t happen. Only by addressing the development viability crisis will the Government unlock the economic growth and investment we need to see across the country.”

The ongoing viability crisis is evidenced by July’s S&P Global UK Construction Manager’s Index showing the sharpest contraction in activity for five years, the most recent quarterly Build-to-Rent (BtR) starts showing further decline, and the September 2025 Deloitte London Office Crane Survey recording a decrease in new construction activity for second consecutive survey.