The UK has seen an increase in the number of build to rent homes over recent times. However, with demand for rental properties showing no signs of slowing, more needs to be done, according to the industry.
Latest figures released by the British Property Federation show that during the past year, the total number of build to rent units with planning permission, under construction or completed rose to 67,000. This represented an increase of more than 200%.
More properties are being constructed in regions that have seen a rise of nearly 400% from the 7,000 units seen in October 2015 to 34,000 one year on. Despite this, the British Property Federation believe more homes could be delivered.
At present, the Federation points out that renters have around £50bn to invest and are looking for stable income in sectors unaffected by Brexit uncertainty.
In order to create more growth, the British Property Federation has called for the Government to make changes to the stamp duty alterations made last year.
As part of the Autumn Statement, the Federation wants the Chancellor to introduce clearer national planning for build to rent developments. Additionally, the firm wants to allow flexibility on space standards by up to 10%.
Melanie Leech, chief executive of the British Property Federation, noted: ‘The build to rent sector has been one of the good news stories of the housing market over the past few and it is great to see quality rental homes now coming on to the market at scale.’
‘The truth is the sector could be delivering so much more, however, if it can find the opportunities and maintain confidence to invest. The Brexit negotiation period provides a window of opportunity to channel even further investment into this form of housing supply,’ she continued.
Leech also observed: ‘The sector was kick started a few years ago with support from Government and further modest planning and stamp duty changes we believe could firmly send it into overdrive.’