In a major move, the British Property Federation (BPF), the voice of the real estate industry in the UK, has urged Chancellor to support the build-to-rent sector in order to mitigate the housing crisis. The plea comes in the wake of the UK’s exit from the EU and the additional stamp duty on second homes. The submission by the BPF comes at a right time, as the build-to-rent market is getting contracted while rents are gradually increasing across key markets.
Last year, the number of homes in the build-to-rent sector was 67,000, an increase of over 200 per cent in Britain. According to the BPF, with appropriate interventions, the sector can deliver more number of homes, which in the long-term could help cool the housing inflation.
The additional stamp duty on second homes had in fact discouraged investments in rental property market. The BPF estimated that the investment potential in the build-to-rent sector was £50bn and the government should take a serious view of the developments in the market.
The BPF has also urged the Chancellor to introduce clear national planning policy for build-to-rent developments and provide flexibility on space standards up to 10 per cent. Both the suggestions are critical for the success of the build-to-rent sector, as more number of players will have an active involvement in adding to the housing pool.
In its Autumn Statement submission, the BPF has also urged the Chancellor to introduce clearer national planning policy for build to rent developments, and to allow flexibility on space standards by up to 10%