Posts with tag: demand for rental homes

BPF calls for tax change to improve build to rent sector

Published On: October 17, 2016 at 11:05 am


Categories: Finance News

Tags: ,,,

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%.

BPF calls for tax change to improve build to rent sector

BPF calls for tax change to improve build to rent sector

Rental Homes

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.’[1]

‘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.[1]

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.’[1]



London rent values up as growth stays steady

Published On: June 4, 2015 at 2:52 pm


Categories: Landlord News

Tags: ,,

A report released today has indicated that rental values in the capital rose during May, but house price growth remained slow.

Record recording

An investigation conducted by London estate agent Knight Frank, suggests that rents rose by 4.2% last month, the highest growth recorded since December 2011. This compares to a decline of 1.4% during May of 2014.[1]

The upward momentum generated was caused by the recovering UK economy and the demand for rental properties in the face of election uncertainty, according to the firm.

However, the number of prospective tenants in May was down by 12% in comparison to the same month one year ago, with viewings also down by 18%.[1]

Despite this, yearly figures were much more encouraging, with new prospective tenants rising by 12% in the year to May, with viewings also up by 7%.[1] Figures are expected to rise during the summer months as part of an annual seasonal trend boosted by students, families and corporate tenants.

London rent values up as growth stays steady

London rent values up as growth stays steady


More data from the investigation shows that demand has stayed high in areas such as Marylebone and Hyde Park, especially in the lower price ranges. This gives the impression that renters remain conscious despite an improving economic climate.

Gross yields for prime rental properties rose to 2.96%, which was the highest level since August 2013. However, prices in the prime central London sales market grew by just 0.3% during May and the annual increase of 2.3% was the lowest since the last election in 2010.[1]

Tom Bill, head of London research at Knight Frank, commented that, ‘this relatively low level of growth underlines the gap between the expected impact of the result and the reality of a property market still digesting a series of tax changes.’[1]