The British Property Federation wants the next government to give special assistance to Build To Rent developers to allow them to reach a target of 30,000 new homes a year.
The federation claims that there are now over 100,000 completed BTR homes and a further 160,000 in the pipeline, but it claims the UK still lags some way behind the US, Australia and other countries in delivering similar homes at scale.
The BPF therefore wants special treatment for BTR, including a stamp duty exemption for new developments of more than 100 units to support valuations, de-risk development and create more liquidity in the market; a requirement for local authorities to include BTR in Local Plans; and help for BTR developers to raise debt with a government guarantee to support viability throughout market and economic cycles
The federation is also calling for subsidies for affordable housing to 145,000 homes per year, longer term rent settlements “to support security of income and viability”, and more encouragement for institutional investors and housing associations to participate in building affordable units.
The BPF also wants favourable local council treatment of Purpose-built student accommodation (PBSA) including the exemption of affordable student accommodation from CIL payments “to support delivery at lower price points”.
Ian Fletcher, policy director of the British Property Federation, adds: “The only way to tackle the housing emergency is to build more homes of all types and by delivering more affordable housing, market rental homes, student accommodation and older peoples’ housing we can relieve the pressure on overall housing supply. However, as it stands development across these sectors is restricted to 35,000 homes a year, when there is a need for at least 100,000.
“Pension funds and other sources of institutional capital are attracted to these sectors as they offer secure long-term income but the next Government must do more to give them the confidence to invest. Currently the planning system at both a national and local level does not provide enough clarity or support for a wide range of tenure-types, and there are a number of funding mechanisms Government can introduce that will help de-risk schemes and support delivery when economic and market conditions are more challenging.”
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Normal landlords don't want special treatment or subsidies. We just want to be treated in the same way as EVERY other business and taxed on profit, not turnover.
If BTR isn't viable without subsidies and special help it clearly isn't a sustainable business model. BTR rents are significantly higher than traditional BTL so it is staggering they are demanding treatment we can only fantasize about.
You are quite right as usual. I was talking to one of my tenants yesterday, turns out they have experienced corporate landlords when they lived near London, and they much prefer dealing with me and the fairer rent!!
You need clout to get special treatment & small LLs have none!
They will get it from their “ special friends” in high places 🤷♂️
More proof that the Corporates intend taking over assisted by their political friends. The small landlords are being driven out the market just like the small care homes were. I would love to see Generation Rent take them on. I suspect they won’t as I have always suspected they have been sponsored by the big boys. I have always suspected we were being driven out purposefully with all the vilification from the media especially the BBC and LBC. NRLA have done nothing for the small landlords. Maybe I sound like a mad conspiracy theorist and I hope I am wrong.
You're not wrong. You're spot on.
Margaret, not wrong just add ITV every evening continuously all one sided bias.
So government to subsidise corporate capital. Because corporate capital can't make money without government subsidy.
Corporate capital running states in bed with government had an emotive name.
Margaret - exactly right. All these "social activist" groups, Generation Rent, BLM, Antifa, Just Stop Oil, Care 4 Calais etc, have got corporate funding behind them. The strategy is obvious, brainwash the useful idiots, fund them to cause disruption, they they pick up the pieces with their solutions which a demoralised population won't argue against.
It is happening in every sector right now, not just housing. I'm not sure what can be done to stop their relentless march. But then again, people probably felt the same way in the late 1930's and it needed a strong reaction to beat it that time. Let's hope we can find our Churchill equivalent.
Lady T would do
If only, Andrew.
Liz Truss tried but was shot down and her policies blamed for everything that has gone wrong since. Amazing since she never had the chance to implement any of them.
Ha! Special treatment for big, blood-sucking business to hoover up money eh? Ordinary landlords/developers/individual BTRs were doing this job of big supply and supply diversity perfectly well before they were discriminated against by getting SPECIAL TREATMENT in the other direction! Restore NORMAL treatment and give us confidence back, and we’ll happily supply all the rental market needs!
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