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UK: The British Property Federation (BPF) has called on Chancellor Rachel Reeves to use her Spring Statement to reinstate Multiple Dwellings Relief.
The BPF says the abolition of MDR in 2024, which removed a bulk purchase relief within the Stamp Duty Land Tax regime across England and Northern Ireland, resulted in up to 25,000 build-to-rent (BTR) homes stalling or becoming unviable as a direct result.
Chief executive Melanie Leech said: “The tax system is undermining the viability of much needed new homes in London and across the country. An extremely cost-effective way of unlocking viability and enabling stalled housing to proceed to construction would be through the reinstatement of targeted MDR. Given the combination of fiscal pressures and low housing numbers the government is facing this is a simple lever to pull that would help address the viability crisis and increase Treasury returns.” We urge the Chancellor to act now rather than delay to the Autumn, when the housing delivery numbers will be as stark for 2026 as they have been for 2025.”
A revised, targeted MDR structure focused on the BTR sector would cost the government around £155 million, the BPF said. However, if it enabled delivery of the estimated 25,000 homes affected, wider economic activity could generate roughly £650 million in tax revenues.
The removal of MDR wiped an estimated £4 billion from BTR portfolio valuations, the BPF said. It added that targeted relief would rebalance tax treatment between large, high-density developments and smaller scale projects, supporting purpose-built rental delivery while representing value for money for the Exchequer.
The BPF statement comes on the back of the Association for Rental Living calling for targeted government support for the BTR sector.
Highlights:
• The British Property Federation (BPF) has called on Chancellor Rachel Reeves to use the Spring Statement to reinstate Multiple Dwellings Relief
• The BPF says the abolition of MDR in 2024, which removed a bulk purchase relief within the Stamp Duty Land Tax regime across England and Northern Ireland, resulted in up to 25,000 build-to-rent (BTR) homes stalling or becoming unviable as a direct result
• A revised, targeted MDR structure focused on the BTR sector would cost the government around £155 million but if it enabled delivery of the estimated 25,000 homes affected, wider economic activity could generate roughly £650 million in tax revenues
