Up to 30,000 build-to-rent homes needed every year, BPF says

The British Property Federation calls on the next government to take action to attract investment into the build-to-rent sector.

Apartment block under constructionAround 30,000 new build-to-rent homes are needed every year to help deal with the chronic shortage of affordable properties, the British Property Federation estimates.

The BPF is calling on the next Government to unlock private capital to address the acute under-supply of homes.

It is estimated that 3.7 million people are affected by overcrowding, and a further 1.2 million are on council waiting lists, the federation says.

Lagging behind

The BPF says there are now over 100,000 completed BTR homes – and a further 160,000 in the pipeline – but the UK still lags behind the US, Australia and other countries.

A stamp duty exemption for new developments of more than 100 units would help, it says.

The BPF forecasts there is £6.5 billion of private capital targeting the sector that could support the delivery of 50,000 units per year.

The only way to tackle the housing emergency is to build more homes of all types.”

Ian Fletcher, British Property Federation
Ian Fletcher, Policy Director, British Property Federation

Ian Fletcher, Policy Director at the BPF, says: “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,” he says.

“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.”

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