Not the best news for this sector. The building industry as a whole was lobbying for a reduction of VAT on property extensions (new buildings are already zero rated). The argument was that this would help kick start construction which remains subdued after the 2008 crash.
Clearly that one was lost and the imposition of VAT on alterations to listed buildings will have the opposite effect – tending to slow construction activity. I notice that the notes accompanying the budget say that this will have a minimal macroeconomic effect.