The big landlords are asking for special favours from the next government. They want more help building “Build to Rent” (BTR) homes – these are apartments designed specifically to be rented out, not sold.
The British Property Federation (BPF) – which represents the big landlords – claims that there are already over 100,000 BTR homes built, and another 160,000 in the pipeline. That’s a lot of apartments!
But they say the UK is lagging behind other countries like the US and Australia, where BTR is already huge.
What Do They Want?
The BPF wants the government to help BTR developers in a number of ways. They want:
- Stamp Duty Exemption: They want a special exemption from stamp duty for new BTR developments with more than 100 units. This would make it cheaper to build new BTR homes, and the BPF says it would help make it more attractive for investors.
- Local Plans: The BPF wants the government to require local councils to include BTR in their local plans. This means the councils would have to make sure there’s enough land available to build BTR homes.
- Government Guarantees: The BPF wants the government to provide guarantees to help BTR developers raise debt. This would mean the government would be on the hook if the developers ran into trouble.
It’s Not Just About BTR
The BPF also wants special treatment for other types of housing, including:
- Affordable Housing: The BPF wants the government to provide subsidies to help build 145,000 affordable homes per year.
- Student Accommodation: The BPF wants the government to make it easier to build student accommodation by exempting affordable student accommodation from a tax called the Community Infrastructure Levy (CIL).
- Longer Leases: The BPF wants the government to encourage longer term leases for rental homes. They argue that this would give tenants more security and make it easier for landlords to get funding.
Landlords Say They’re Helping With The Housing Crisis
The BPF says that all these measures are needed to help tackle the UK’s housing crisis. They argue that by building more homes of all types, including BTR, affordable homes, student accommodation, and homes for older people, they can help ease the pressure on the housing market.
What Does It Mean For You?
So, what does all this mean for you? If the government agrees to these requests, it could mean more BTR homes in your area. This might mean more rental options, but it could also mean more competition for those rental homes, potentially pushing prices up.
The BPF says that BTR homes will be more affordable than traditional homes, but it remains to be seen whether that will actually happen. It’s worth keeping an eye on how the government responds to these demands.