The Construction Products Association has called on the Chancellor to deliver an emergency stimulus to rescue the flagging house building sector in next month’s Autumn Budget.

The industry body warned the government has “no chance” of meeting its housing target without swift action to restore buyer confidence and kick-start stalled demand across the supply chain.

The call comes as the CPA’s latest forecasts show housing output stuck in neutral — flat through 2025 and up just 4% at best in 2026 — after a bruising 14% fall in completions and a 39% collapse in new starts between 2022 and 2024.

Output is now not expected to recover to 2022 levels until at least 2028, with pre-pandemic volumes unlikely to return before 2029/30. Any Budget-driven tax rises, the CPA warned, could hammer affordability further and choke off recovery altogether.

Professor Noble Francis, CPA economics director, said: “Construction has already lost more than 11,000 construction firms since the start of 2023, and given the current low levels of house building and home improvement, we expect construction insolvencies to accelerate in 2026.

“A new positive, time-limited stimulus for house building demand is urgently needed from the government – particularly for first-time buyers – before insolvencies further damage skills and capacity throughout the construction supply chain, including architects, builders’ merchants and product manufacturers, as well as house builders and specialist contractors.

“Without these firms and their critical skills and capacity, any sustained recovery in house building will be more difficult, slower, and more expensive over the course of this parliament.”

CPA chair and Siderise Group chief executive Adam Turk added: “Our industry has a responsibility to flag the likelihood of worsening job losses, skills shortages and manufacturing capacity unless this government acts to stimulate growth in this essential sector. This is not scaremongering but rather an honest reflection of what is happening on the ground.

“We have already seen house building collapse in London but are encouraged that government has recognised the crisis facing industry there and intervened to help.

“That help is needed across the country now, with a particular focus on supporting new home buyers who are struggling with affordability.”