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UK: The British Property Federation is calling for the budget to include measures to support the property industry in general, and specifically regarding BTR viability.
The BPF says the real estate industry contributes £110 billion to the UK economy a year, and supports one in 13 of all jobs in the country.
But in a submission to the Treasury this week, the association “argues that this is at risk due to the ongoing viability crisis impacting all asset classes”.
It focuses on tax relief for the build-to-rent sector, which it says should play a significant part of the government’s plans to develop new towns and build 1.5 million homes by the next election.
It adds: “The crisis is particularly acute in the build-to-rent sector, which is vital to overall housing delivery, with construction starts in the first half of 2025 falling to just 2,600 homes, compared with 18,000 new build-to-rent homes delivered in the whole of 2024.”
The BPF is calling on Chancellor Rachel Reeves to include the following in her November 26th fiscal statement:
- Reinstate stamp duty support for high-density housing — The abolition of multiple dwellings relief under the previous government in 2024 significantly disadvantaged high-density housing developed at scale – and has permanently eroded the value of the asset class – particularly in less valuable areas
- Extend empty property business rates relief to 12 months — property owners are currently liable to pay business rates on empty commercial properties after three months for retail and office buildings, and six months for larger logistics buildings. But data shows that just 9% of empty shops are re-let in six months – showing how out of step the current relief is with actual reoccupation times
- Remove council tax on newly developed build-to-rent homes — currently, new build-to-rent homes are liable for council tax three months after completion, but the letting of larger developments delivering hundreds of much-needed homes often takes 12 months or more
- Extend zero-VAT for energy-saving materials – this would make the refurbishment of older rented housing stock more viable
British Property Federation chief executive Melanie Leech said: “As long-term investors in communities across the country, our members want to harness domestic and global capital to support the delivery of new towns at pace; and invest in more productive workspaces, new homes for all stages of life, and the buildings and public spaces that underpin modern, cohesive communities. Yet 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’.”
Highlights:
• The British Property Federation is calling for the budget to include measures to support the property industry in general, and specifically regarding BTR viability
• The BPF says the real estate industry contributes £110 billion to the UK economy a year, and supports one in 13 of all jobs in the country
• It is calling for tax relief for the build-to-rent sector, which it says should play a significant part of the government’s plans to develop new towns and build 1.5 million homes by the next election
