In the UK there is a constant need for more homes; therefore the number of rented homes available needs to expand. But since the buy to let homes have received an additional 3% stamp duty, 69% of landlords have been put off investing in further rental property, according to the Residential Landlords Association.
“Just as the UK needs more rental homes than ever before, the stamp duty change has significantly dented investors’ interest in providing those homes. We’re in danger of seeing a real vacuum in the buy to let market – many of those submitting their tax returns this April and May will be thinking carefully about alternative ways to make money,” said Jonathan Ivory, Managing Director at Atlas Residential.
The government has stated that it is committed to improving the UK’s housing situation through a range of measures, such as making planning permission harder to obtain for developers who hold onto land simply to watch its value rise. All these changes are increasing the number of build to rent developers who want to create the next generation of rental homes.
“Build to rent provides an unprecedented opportunity to put renters’ needs first. Renters can enjoy premium facilities that have been shaped around the contemporary urban lifestyle. Demand for homes in the UK is stronger than ever and the build to rent sector is ideally positioned to meet that demand. It is also well placed to adapt to the changing needs of the market. As the build to rent sector in the UK evolves, family homes are starting to take shape,” said Jonathan.
Even though in the UK this sector has catered mainly to urban professionals in city centre locations, companies such as Atlas Residential are pushing to change that model and create build to rent communities that include low-rise, family homes. With buy to let homes losing its charm, now it is the perfect time to invest in the build to rent sector.
