Build To Rent players complain about tax and too much...

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03 May 2023

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By Graham Norwood

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Build To Rent players complain about tax and too much regulation

Build To Rent sector players are complaining about too much tax and regulation holding back their activities.

A new analysis of 31 developments in the BTR sector shows that the total number of these developments that were either complete, under construction or planned increased from 229,542 in Q1 2022 to 251,208 in Q1 2023 - an increase of nine per cent.

This rate of growth was slower than the same period in 2021-2022, which saw an increase of 19 per cent.

The analysis – published by campaign group BusinessLDN, in partnership with the British Property Federation, Dataloft, and the UK Apartment Association – claims that a decrease in grant funding, increased construction costs and the need to address issues concerning building safety and retrofit are hampering the industry’s ability to deliver the 66,000 new homes per year which is claimed are needed to house current and future Londoners.

Stephanie Pollitt, programme director for housing at BusinessLDN, says: “The pace of construction between other parts of the country and the capital continues to widen for BTR developments, which have a vital role to play in tackling the capital’s housing crisis. The need to accelerate the delivery of this accessible and high-quality accommodation is critical.

“BTR is only one piece of the housing jigsaw puzzle, but its continued growth alongside other tenures must be supported to ensure that London is able to attract and retain the talent that businesses need. Tackling the capital’s housing crisis through a mix of solutions – including Build To Rent - is vital to secure the long-term global competitiveness of the city.”

The data also shows that despite the rising cost of living in London, affordability has stayed similar for couples/sharers (28 vs 27 per cent last year), whilst affordability for families has improved since last year (26 v 29 per cent).

People that are single, however, spend the highest proportion of gross household income on rent at 35 per cent, which is higher than the 31 pew cent seen last year. Affordability is calculated using the ratio between earnings and rent paid.

Other data shows that of 17,722 residents living in the 31 schemes studied had incomes broadly similar to those living in the mainstream private rented sector with 25 to 34 the most common age band across all parts of the London private rental sector.

Ian Fletcher, director of policy at the British Property Foundation, adds: “The sector can continue to help alleviate London’s undersupply of homes, but as … the growth of Build To Rent in London is being outpaced by other regions at present. Developers in London face a number of unique challenges – such as a shortage of sites, the cost of land, and a squeezed energy grid. It is important the capital continues to provide housing solutions for all its residents because that is what makes a well-functioning city.”

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- Michael Foley
- 03 May 2023 06:48 AM
Build 2 Rent players complaining about tax and too much Regulation.
Spare a thought for Private landlords who are hammered left, Right and Centre no one has any sympathy for us.

- Nick Van Hoogstraaten
- 03 May 2023 06:48 AM
Ah some complaining from the BTR Brigade. It’s about time they said something. We need much more and much louder.