UK Tax Speculation to Slow Homebuilding Into 2026, Survey Says

Uncertainties around taxation in the run-up to the UK budget is likely to weigh on homebuilding for the next six months, pushing the government further away from achieving its housing target.

Some 43% of developers expect housing starts to decline through the final quarter of 2025 as firms delay decisions until after the Nov. 26 budget, according to a survey of more than 60 homebuilders by Knight Frank.

The impact of budget uncertainty on development is likely to persist into 2026 as the wait for tax clarity slows down the “lengthy” housebuilding process, the broker warned.

“The November budget ...