Home builder Tamawood said first half profit would fall by more than a quarter as it blamed the Labor Party's planned negative gearing changes and last year's Liberal leadership spill ahead of its own failure to adjust to a slowing market.

In a statement to the ASX on Monday, the Brisbane-based builder, which builds under the Dixon Homes brand, said a 'perfect storm' of conditions had caused a decline first half profit of 26.9 per cent from last year and it would have to review the planned 16¢ final dividend it predicted last year.