By Justine Edmonds, Head of Build to Rent / Leasing Strategies at LRG
The Build to Rent (BTR) sector has the potential to deliver one in ten of the government’s 1.5 million new homes, but it can only do so if the viability crisis is addressed. The Budget on 26 November is a vital opportunity to unlock stalled investment and enable the sector to contribute fully to housing supply and economic growth.
At the top of our wishlist is the reinstatement of Multiple Dwellings Relief within Stamp Duty Land Tax (SDLT) to support high-density housing. The loss of this relief last year rendered around 25,000 BTR homes unviable almost overnight. Restoring it would be the single most effective way to stimulate development.
Alongside this, the government should extend empty property business rates relief from six to twelve months and remove council tax on newly completed but unoccupied BTR homes. These measures would ease holding costs at a time when inflation and higher borrowing rates have put projects under significant pressure.
We would also like to see zero-VAT on energy-saving materials extended to cover retrofit and refurbishment schemes. Many BTR assets built a decade ago are now at the end of their initial investment cycle. Encouraging reinvestment in energy efficiency would improve building performance, lower costs for tenants and help meet national sustainability goals.
Above all, the Budget must prioritise stability. The BTR market remains strong in fundamentals but fragile in sentiment. Starts have fallen sharply – just 2,600 in the first half of this year compared with 18,000 completions in 2024 – not because of lack of demand, but because of fiscal uncertainty. Investors need clarity and consistency, not short-term fixes.
If the government truly wants to build 1.5 million new homes, it must recognise that BTR can deliver at speed and scale. With the right tax environment and a commitment to planning reform, the sector can accelerate delivery, support regeneration and play a central role in driving the UK’s housing-led growth agenda.
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