UK property developers are calling on the government to reform property taxes. They say high taxes are creating a “fundamental and debilitating viability challenge” that threatens new housing projects, particularly in London.
The British Property Federation (BPF) is urging Chancellor Rachel Reeves to act ahead of the upcoming budget. Developers argue that current tax levels discourage investment and slow down housing development at a time when demand for homes is high.
Developers say that property taxes are adding significant costs to new projects. These costs can make some developments financially unfeasible, especially in major cities where land and construction expenses are already high. The BPF warned that without reform, the housing supply could remain constrained, keeping prices high for buyers and renters.
The call comes as London faces an urgent need for more affordable housing. Developers claim that cutting property taxes could stimulate investment and encourage the construction of more homes. They argue that this approach would not only benefit the housing market but also support economic growth.
BPF officials stressed that reforming property taxes would make development projects more viable. By reducing financial pressure, developers could increase building activity and deliver housing faster. They also suggested that targeted relief could support smaller developers, who are particularly affected by high tax burdens.
The federation’s proposal highlights the broader impact of property taxes on the real estate sector. Taxes that are too high can reduce investor confidence, limit construction, and slow overall economic activity. Developers are urging policymakers to balance tax revenue needs with the importance of a growing housing supply.
The property sector is a major contributor to the UK economy, providing jobs, investment, and infrastructure development. Developers say that addressing the tax issue is essential to ensure long-term growth and stability. They also noted that a tax reduction could help the government achieve housing targets more effectively.
Industry experts argue that reforming property taxes could create a positive cycle. Lower taxes may encourage more developers to start projects, increase housing supply, and improve affordability for residents. In turn, this could lead to higher consumer confidence and stronger economic performance.
Developers emphasized that the timing is critical. With the budget approaching, they hope the government will implement changes that make housing projects financially sustainable. Without timely action, they warn that delays in construction could worsen the housing shortage, especially in London and other major cities.
The UK property sector is watching closely as policymakers prepare the budget. Developers are hopeful that reforms will be introduced, allowing the sector to thrive while meeting the country’s growing demand for housing. The BPF’s campaign reflects a broader push to ensure the property market remains viable, sustainable, and able to support economic growth.
By advocating for UK property tax reform, developers aim to create a more favorable environment for investment, accelerate housing construction, and ensure that cities like London can meet housing needs in the years ahead.
