Due to stamp duty increasing by 3% on buy-to-let (B2L) investments, 69 per cent of landlords have been “put off” investing in further rental property, according to the Residential Landlords Association, despite rented homes becoming the “norm” in the UK.
Atlas Residential managing director Jonathan Ivory commented: “We’re in danger of seeing a real vacuum in the buy to let market – many of those submitting their tax returns this April and May will be thinking carefully about alternative ways to make money.”
However, despite increased stamp duty creating a more “hostile” B2L market, the government has stated that it is committed to improving the UK’s housing situation through a “range of measures”, one of which involves making it harder for developers, who are holding on to land to watch its value grow, to obtain planning permission.
These implemented changes are allowing an “influx” of build to rent developers to create the “next generation” of rental homes, packed with purpose-built facilities.
“Build to rent provides an unprecedented opportunity to put renters’ needs first. Renters can enjoy premium facilities that have been shaped around the contemporary urban lifestyle. Demand for homes in the UK is stronger than ever and the build to rent sector is ideally positioned to meet that demand. It is also well placed to adapt to the changing needs of the market. As the build to rent sector in the UK evolves, family homes are starting to take shape,” Ivory said.
Current build to rent levels are very low as its still in its infancy, with 105,000 units complete, underway or planned, compared to a UK population of 65 million.