Daniel Austin is chief and co-founder at ASK Partners
Dear Chancellor Reeves,
As you prepare your Autumn Budget, we urge you to deliver measures that stabilise the property market now while laying foundations for long-term growth.
The housing market has stagnated this year, with developers, investors, and consumers adopting a “wait and see” approach. This is fuelled not only by piecemeal policy signals but also by speculation around major property tax reforms, from extending National Insurance to landlords’ rental income, to replacing stamp duty with an annual property levy, to altering capital gains tax on higher-value homes.
Each carries fiscal potential but also serious risks. Extending NI could raise £3bn annually but drive small landlords from the market, worsening supply. Removing CGT exemptions for primary residences would be lucrative but politically divisive. Abolishing stamp duty would ease mobility but create an £11bn revenue gap, while an annual levy risks cashflow strains on households without guaranteed returns. Even mooted council tax reforms could exacerbate regional inequality.
Uncertainty alone is paralysing activity. Rumours are already shaping investor and homeowner behaviour. Yet with the right policies, confidence could return. History shows housing often leads the economy out of downturns. Recent modest rises in house prices and mortgage approvals hint at recovery, but systemic reform is essential.
The shortage of homes to rent and buy is the root of affordability pressures, with profound effects on GDP and social stability. Your 300,000 homes target is welcome but has never been met since its inception in 2004. Capital Economics estimates at least 385,000 are needed annually. Since 1970, France has built nearly twice as many homes as the UK despite similar population growth. This imbalance demands radical but credible reform, not short-term fixes.
We urge you to prioritise the following in October:
- Provide clarity on tax reform
Rumours of sweeping tax changes are undermining confidence. If reforms are pursued, they must be phased, predictable, and paired with supply-side incentives, not solely designed for revenue.
- Empower SME housebuilders
SMEs built 40% of homes pre-2008; today just 15%. Smaller developments are more locally accepted. Policies could include allocating small land plots for SMEs, fully permissive planning on brownfield sites under 2.5 hectares, and equity support to strengthen SME balance sheets.
- Fix the planning system
Delays remain the biggest barrier to delivery, inflating costs and deterring investment. Independent decision-making to remove political conflicts, combined with private sector support to clear backlogs, would unlock growth. Planning reform is not just regulatory, it is an economic necessity.
- Strengthen construction skills
Post-Brexit labour shortages are acute. Greater support for off-site construction would improve productivity, attract younger and more diverse workers, and cut build times.
- Prioritise social housing
The net loss of 200,000 social homes in the past decade has deepened the crisis. Councils need real powers and incentives to deliver at scale. Reforming compulsory purchase rules, allowing acquisitions without “hope value” costs, would help unblock stalled projects.
- Incentivise brownfield and conversions
Automatic planning consent for ESG-compliant brownfield sites would accelerate regeneration, maximise infrastructure, and cut environmental impact.
- Attract investment, domestic and international
Investors remain willing, but many feel let down by the lack of incentives. Research from ASK shows 91% of private investors will maintain real estate allocations, with strong interest in data centres, logistics, and later-life housing. Real estate debt is also seen as attractive, offering lower volatility and regular income. Clear, investor-friendly policies could channel this capital into development and infrastructure.
Chancellor, the market is fragile. Prolonged uncertainty over property taxes is already suppressing activity. Decisive reforms and targeted stimulus are urgently needed to restore confidence, unlock supply, and drive growth. The sector is ready to deliver if given a clear, credible framework. We hope to see these priorities reflected in your Budget so housing can once again lead the UK economy out of uncertainty.
