BPF: Instability in tax and regs undermining property investment

The British Property Federation (BPF) has urged the UK Government to prioritise tax and regulatory stability in the upcoming Autumn Budget, warning that inconsistent policymaking and untested legislative proposals are damaging investor confidence and undermining development viability across the property sector.

An official pre-budget representation submitted to the Treasury and addressed from BPF Chief Executive Melanie Leech, highlights the growing fragility of investor sentiment following a series of policy announcements made without adequate consultation or impact analysis.

The Federation cites the proposed abolition of Upward Only Rent Review clauses, introduced in the English Devolution and Community Empowerment Bill, as an example that triggered negative reaction from global investors, concerned about the UK’s perceived retreat from predictable policymaking.

"Even the suggestion of new taxes or regulations can impact development feasibility and erode appetite to invest in the UK," the letter states. The BPF warns that speculation in the media about further property-related taxes has contributed to a sharp slowdown in market activity, including a record low of just 19 new home sales across London in May.

According to the BPF, development viability is facing a critical challenge across all regions and asset classes. Build-to-Rent (BtR) housing starts have fallen 80% since 2022, with only 2,600 homes initiated in the first half of 2025. Without urgent action, the organisation warns this will jeopardise delivery of new homes, commercial spaces, and wider regeneration efforts—including the Government’s own plans for New Towns.

The federation argues that long-term investment in property, whether for homes, workspaces or infrastructure, requires a stable and transparent fiscal environment. It calls on Government to avoid further new taxes and ensure that unavoidable changes are accompanied by early consultation and clear timelines.

Among its recommendations, the BPF also calls for:

* Clarity on the implementation of the Renters’ Rights Bill and Minimum Energy Efficiency Standards (MEES) to avoid stalling retrofit investment.

* A halt to further property levies and a review of existing charges like Stamp Duty Land Tax and council tax on unoccupied new homes, which disproportionately affect high-density developments.

* Caution over landfill tax increases, which it warns could hamper brownfield regeneration.

The submission concludes by asserting that policy stability is not only key to unlocking capital but also vital for realising the Government’s growth, housing and decarbonisation ambitions.