Chancellor Rachel Reeves’ spending review on 11th June 2025 laid out ambitious plans to help boost the UK’s property and construction sector. With a historic investment pledged towards affordable housing, along with commitments to improve warmth in UK homes, the Spending Review marked a significant step forward for the property and construction sector.
Affordable Housing
The Chancellor pledged a landmark £39 billion investment over the next 10 years to support the construction of social and affordable homes — nearly double prior investment. This commitment aims to address the UK’s longstanding housing shortage. By investing in the construction of social housing, the government hopes to improve access to affordable living, stabilise housing costs, and stimulate activity across the construction sector. The initiative is also expected to unlock opportunities for developers, housing associations, and local contractors, particularly in areas with high demand and limited existing stock.
Investment In Home Upgrades
The Chancellor also confirmed that the full £13.2 billion fund dedicated towards the Warm Homes Plan has been allocated. This initiative will focus on fixing draughty homes, and installing heat pumps, solar panels, and insulation upgrades to help households reduce their energy use, without losing out on comfort and warmth. This is expected to save residents an average of £600 per year on energy bills, making homes more affordable to run, as well as better for the planet.
For the construction sector, this presents a significant opportunity. Demand for skilled trades, sustainable materials and low carbon technologies will increase as a result of this investment.
Stephen Charles, Property and Construction expert at Hawsons Chartered Accountants stated,
“This Spending Review is a welcome step in the right direction for the property and construction sector. While the scale of investment is encouraging, the real impact will depend on how quickly funding reaches the ground and whether planning reforms can genuinely speed up delivery. There’s potential here for meaningful progress — but the industry will be watching closely to see how it’s implemented"
Cost of Heating Homes Finally Set to Drop?
Between June 2019 and June 2025, the average annual energy bill for a typical UK household has increased by approximately 51%, from around £1.1k to around £1.7k. This sharp increase has made heating homes significantly more expensive for millions across the UK, placing pressure on household budgets. Therefore, this announcement from the Chancellor will come as a much-needed boost for UK homeowners. By improving insulation and supporting the installation of heat pumps and solar panels, the measures aim to reduce long-term energy consumption and ease the financial burden of heating and powering homes.
Property & Construction Accountants
At Hawsons Chartered Accountants, we work closely with businesses in the property and construction sector — from developers and construction firms to estate agents and investors. Our team understands the complexities of the industry and provides practical, proactive advice to help you grow and stay compliant. Get in touch with our property and construction specialists to find out how we can support your business.
Stephen Charles
Tax Partner, Sheffield
Free initial meeting
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