The Government’s Autumn Budget has been met with a mixed response from the construction and housing sectors, with industry bodies welcoming additional housing investment and measures to support buyers while warning that more action is needed to address the barriers to delivery.
Among the key announcements are an additional £1bn for social and affordable housing in England, taking funding for the 10-year programme beyond £40bn, and a new Your First Home scheme offering government-backed loans to eligible first-time buyers. A new First Time Buyer ISA is also planned for April 2029, replacing the Lifetime ISA.
For those working in custom and self build, measures affecting housing demand, development costs and the planning and regulatory environment will be particularly relevant.
Housing investment and buyer support welcomed
The Royal Institute of British Architects (RIBA) welcomed the additional investment in social and affordable housing, alongside plans to give mayors and strategic authorities across England greater control over local spending.
RIBA President Chris Williamson said the measures represented a step towards delivering high-quality homes and supporting economic growth. He also called for the reinstatement of city architects to strengthen strategic oversight of the built environment and help local areas deliver better outcomes.
The Home Builders Federation (HBF) also welcomed the Your First Home scheme, arguing that improving access to homeownership could help address a lack of effective demand, one of the barriers to increasing housing supply. However, it said further details, including house price caps and eligibility parameters, were needed before the likely impact on new-home delivery could be assessed.
For the custom and self build sector, the effectiveness of buyer support will depend on how well the measures translate into increased demand and whether they benefit a broad range of housing options, including homes commissioned by individuals.
Calls for a more supportive environment for builders
Reducing the regulatory burden on development was another key theme in the Budget response.
Glenigan’s Economics Director, Allan Wilen, welcomed plans to defer major Building Regulations changes for the remainder of the Parliament, except where changes are safety-critical, alongside the relaxation of Biodiversity Net Gain requirements for certain brownfield developments. He said the measures could give developers greater certainty and help bring forward new projects.
The National Federation of Builders (NFB) similarly welcomed recognition that burdensome policies, including those relating to grid connections, Building Regulations and Biodiversity Net Gain, can restrict growth. However, its chief executive, Richard Beresford, warned that the Budget offered limited direct relief for construction businesses and could introduce additional operating costs.
The Chartered Institute of Architectural Technologists (CIAT) also raised concerns about the proposed brownfield exemption. While welcoming measures intended to unlock housing delivery, CIAT President Usman Yaqub warned that removing Biodiversity Net Gain requirements from brownfield developments of up to 1.5 hectares could undermine the emerging nature recovery market, without necessarily helping smaller developers.
These issues are particularly significant for smaller housebuilders and custom build operators, for whom the cost and complexity of planning, infrastructure and regulatory compliance can have a considerable impact on project viability.
Skills and business costs remain concerns
Despite the Budget’s housing commitments, industry representatives warned that rising employment costs and persistent skills shortages continue to threaten the sector’s capacity to deliver.
The Chartered Institute of Building (CIOB) called for greater clarity on how devolved funding will operate in practice, arguing that local leaders need sufficient resources, long-term certainty and the capacity to invest in housing, infrastructure and construction skills.
The CIOB welcomed £15m for Leeds College of Building but stressed that investment in training must extend across the country. It also warned that higher employment costs could limit construction businesses’ ability to recruit, invest in training and take on apprentices.
The Federation of Master Builders (FMB) echoed these concerns, highlighting the pressure that additional labour costs could place on smaller building firms operating on tight margins. Its chief executive, Brian Berry, said the Your First Home scheme could help stimulate demand, but argued that smaller builders must be able to benefit from any resulting growth.
The FMB also expressed disappointment that the Budget did not take the opportunity to reduce VAT on energy-efficiency improvements or provide greater support for green skills and apprenticeships.
More needed to tackle housing and sustainability challenges
While the Budget includes measures intended to encourage development and support households, questions remain over whether they go far enough to address the wider challenges facing the industry.
CIAT criticised the reported £1bn reduction to the Warm Homes Plan, arguing that climate mitigation and adaptation should remain central to the country’s long-term security and housing strategy. It also warned that the Budget’s approach to housing delivery did not adequately address the underlying causes of the supply crisis.
For the custom and self build sector, the Budget reinforces the importance of a joined-up approach to housing policy: one that supports demand while also addressing the practical barriers that prevent projects from progressing. Greater certainty around regulation, proportionate development costs, investment in skills and effective support for smaller businesses will all be important if the Government’s housing ambitions are to translate into homes on the ground.
Source: Industry responses reported by Specification Online, 29 October 2026.
