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14th October 2016

The number of build to rent homes has increased, which is fantastic news because of the increased demand for rental properties, but a lot more is needed to meet the demands of a fast growing rental market.

According to the British Property Foundation, build to rent units with planning permission has increased by over 200% to 67,000 units. 

The BPF describes the build to rent scheme as 'large-scale developments built solely for the purpose of renting and which are then managed by one company, rather than dozens of individual landlords'.
To improve activity in this scheme, the BPF has urged the government to change the stamp duty surcharge of 3% on additional homes. 

Melanie Leech, chief executive of the British Property Federation said, 'the build to rent sector has been one of the good news stories of the housing market over the past few years 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'.

‘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.'

Although it looks positive, research from Office of National Statistics states that construction is slowing, and has also said the Brexit vote hasn't impacted this as much as people initially thought. 

ONS senior statistician Kate Davies said, ‘construction output has fallen back quite sharply in recent months and contracted by 1.5% in August. As the fall this month is led by infrastructure, it seems unlikely that post-referendum uncertainties are having an impact.

Monthly construction data can be quite erratic, so we would warn against trying to read too much into one set of figures.

The data also show that output decreased by 1.3% in the three months to August from the previous quarter but year on year it was up 0.2%.'

For information on the build-to-rent scheme, please click here

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