CPA Urges Chancellor to Support Housing Sector Ahead of Autumn Budget

THE CHANCELLOR of the Exchequer, Rachel Reeves, is being urged to strongly support the housing sector ahead of the Autumn Budget on 26 November.

The Construction Products Association (CPA) has written to the Chancellor on behalf of the UK’s manufacturers and suppliers of construction products and materials, recommending a number of key actions that the government could undertake.

In the letter, the CPA makes clear that a positive government stimulus is ‘urgently required’ to enable house building demand in the UK’s largest construction sector.

This argument was reinforced in the CPA’s latest Construction Forecasts published this week, in which house building is expected to remain flat in 2025 and rise by 4% at best in 2026, with risks heavily weighted to the downside due to the potential impacts of Autumn Budget tax rises on homebuyer confidence and affordability, economic growth and unemployment.

This follows on from falls of 14% in new house building completions and 39% in new house building starts between 2022 and 2024.

Professor Noble Francis, CPA Economics Director

Professor Noble Francis, CPA Economics Director, said: “Construction has already lost more than 11,000 construction firms since the start of 2023, and given the current low levels of house building and home improvement, we expect construction insolvencies to accelerate in 2026.

“A new positive, time-limited stimulus for house building demand is urgently needed from the government – particularly for first-time buyers – before insolvencies further damage skills and capacity throughout the construction supply chain, including architects, builders’ merchants and product manufacturers, as well as house builders and specialist contractors.

“Without these firms and their critical skills and capacity, any sustained recovery in house building will be more difficult, slower, and more expensive over the course of this parliament.”

Support Needed for Housing Sector

The CPA is now forecasting that house building will not even return to 2022 levels until at least 2028 and will not return to pre-pandemic levels until 2029/30. Furthermore, the government is estimated to miss its own targets by 30%, even before the potential negative impacts of the Autumn Budget.

The pickup in construction activity that was expected at the start of the year has not materialised. A high degree of uncertainty and affordability continues to hold back home purchases, which negatively impacted on home improvement spending as well.

The risks and uncertainties around the impact of impending tax rises in the Autumn Budget in November have only intensified. The CPA says this is likely to leave households, businesses and investors holding off spending and investment decisions for longer, which limits demand in the largest construction sectors.

Adam Turk, Siderise Group CEO and CPA Chair 

Adam Turk, CEO of Siderise Group and Chair of the CPA, added: “Our industry has a responsibility to flag the likelihood of worsening job losses, skills shortages and manufacturing capacity unless this government acts to stimulate growth in this essential sector. This is not scaremongering but rather an honest reflection of what is happening on the ground.

“We have already seen house building collapse in London but are encouraged that government has recognised the crisis facing industry there and intervened to help. That help is needed across the country now, with a particular focus on supporting new home buyers who are struggling with affordability.

“Industry stands ready to build and support the government’s aspirations, with significant investments in people and capacity already committed by hopeful businesses since the 2024 election, but much of this could be in vain without a much-needed boost to the market.”

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