The British Property Foundation (BPF) has called for Government to promote a "sensible" Stamp Duty Land Tax (SDLT) regime after new research shows over 30,000 build to rent units have planning permission.
The organisation is urging the government to protect large-scale investment in residential property from a proposed higher rate of SDLT.
Discussions are currently being held on levying a 3% SDLT surcharge on purchases of additional residential properties.
However, the BPF is warning a higher tax rate could cancel out progress that the build to rent sector has made since changes to bulk purchases rules were made in 2011.
New figures have revealed over 30,000 build to rent units with planning permission are now in the UK, compared to 21,000 units in October.
In addition, significant investment announcements have been made by the sector, such as Grainger pledging to invest £850m in the private rented sector by 2020 and L&G working with Dutch pension fund PGGM to deliver a £600M build to rent investment plan.
Melanie Leech, chief executive of the BPF, said since the start of the year there has been unprecedented investment in the sector.
"Following the changes that were made to SDLT a few years ago, investment in the sector has really taken off, and it is great to see pension funds and other institutions now investing heavily in housing," she said.
"There is cross-party support for new housing and a better quality rented sector, and we would expect Government to recognise the impact that the SDLT surcharge might have on investment in new homes, and the creation of a better quality rental product."
(LM/CD)
Time and date
CONSTRUCTION DIRECTORY
Construction News
10/02/2016
BPF Calls For 'Sensible' SDLT Approach Towards Build To Rent Sector
Latest Construction News
03/05/2024
Construction firm GRAHAM has started building work on a £19 million Community Diagnostic Centre (CDC) in Workington town centre. The Centre will be located next to Cumberland Council's government-funded Innovation Hub which is also under development in Central Way. GRAHAM is the principal ...
03/05/2024
Significant progress is being made on a new £2 million recycling centre in Haverhill. Construction works are being completed by FCC Environment and its contractor DXI Regeneration Ltd, on behalf of Suffolk County Council. The facility will be operated by FCC Environment, which manages all of ...
03/05/2024
Midlands contractor G F Tomlinson has started work on a new primary school in Dunstall Park Estate, Tamworth. The work is taking place on behalf of Staffordshire County Council alongside project managers and concept architects, Entrust. The project was procured through the Constructing West ...
03/05/2024
Galliford Try has made another step in its carbon reduction journey with the deployment of a new digital platform across its Infrastructure projects. The platform, Qflow, automates data capture and processing by extracting information from delivery and waste tickets, using Artificial Intelligence ...
03/05/2024
Underfloor heating is the most efficient method of heating a room and is fast becoming the most popular option for new building and property refurbishments. As a result, more trade professionals are being asked to install underfloor heating and self-builders and renovators are using it as their ...
03/05/2024
Farrans is making significant progress at Barsham Water Treatment Works in Suffolk, where its client Essex and Suffolk Water is investing more than £49 million in upgrades to the site. Due to be complete in 2025, the project will provide improvements to the resilience and quality of drinking ...
03/05/2024
Work has been completed on a new bridleway bridge at Lindsells Level Crossing in Biggleswade, Bedfordshire. Work started in December 2022 on the fully accessible bridleway bridge which allows pedestrians, horse riders, cyclists and other users to safely cross the railway line, providing better ...
03/05/2024
Ideal Work UK has unveiled Microtopping®, a revolutionary cementitious coating that delivers the sleek, sophisticated look of polished concrete with unparalleled versatility and ease of application. ...
03/05/2024
Building work has commenced on a new development in Oundle that will bring self-contained extra care apartments to the area along with 62 homes and three self-build plots. Persimmon's East Midlands team have started preparing the Barnwell Walk site off St Christopher’s Drive in the town and expect ...
03/05/2024
Morgan Sindall has been appointed to two new Pagabo frameworks. The two frameworks are valued at £1.6 billion each and will run for four years. It was confirmed earlier this month that Morgan Sindall had been appointed to the new £1.6bn Healthcare Decarbonisation Framework from Pagabo, which has ...