The British Property Federation has called on Chancellor Rachel Reeves to remove council tax on newly developed build-to-rent homes.
As it stands homes are liable for council tax three months after completion, despite the letting of larger developments typically taking at least 12 months.
The organisation also called for the reinstatement of Multiple Dwellings Relief (MDR), which was removed by the previous government in 2024 and disincentivises high density housing.
Melanie Leech, chief executive, British Property Federation said: “Despite welcome moves to reform the planning system, investor sentiment remains fragile, as evidenced by the collapse in construction activity across the UK.
“There are simply too many layers of regulation, tax and levies on new development which is at odds with the commitment to ‘back the builders’.
“We appreciate the fiscal pressure the government is under, but we urge the Chancellor not to underestimate the cost of inaction – the government will not raise any taxes and levies on development that doesn’t happen.
“Only by addressing the development viability crisis will the government unlock the economic growth and investment we need to see across the country.”
In terms of other requested changes, the firm would like to see empty property business rates extended to 12 months,
As it stands property owners are liable to pay business rates on empty commercial properties after three months for retail and office buildings, and six months for larger logistics buildings. This is despite just 9% of empty shops being re-let in six months.
There were also calls to make energy saving materials and heating equipment to be zero-VAT.
Currently zero-VAT is only applicable when energy efficient improvements are delivered on a standalone basis rather than as a wider refurbishment.
The Autumn Budget will take place on 26 November.