31 October 2024

Build to Rent Acknowledged in Autumn 2024 Budget

By Build Zone
Autumn Budget Build to Rent

Autumn Budget Build to Rent: The Labour Chancellor Rachel Reeves delivered the Party’s first budget in 14 years yesterday, with a key focus on the housing sector to ‘get Britain building again’. The Build to Rent sector was recognised for its role in housing investment growth and for providing a solution to the demand for new homes in the UK.  

Build to Rent properties—including multi-family apartments, single-family housing (SFH), and co-living spaces—bring value to addressing the housing crisis, but more needs to be done, according to Brendan Geraghty, CEO of the Association for Rental Living (ARL):

“The Autumn Budget provided the Government with the perfect opportunity to demonstrate its commitment to ‘fixing the foundations’ by putting housing front and centre of their plans – yet they did not go far enough today. Housing is the stable foundation for all investments and growth that have been identified in the Budget and industrial strategy, and whilst the reference to support of Build to Rent is welcomed, real certainty for investors is essential.

“Whilst the ARL welcomes that the Government has acknowledged, through its previous announcements, the massive demand for new homes, outlined its commitment to transforming the experience of private renting through its proposed Renters’ Rights Bill and recognised the role of Build to Rent in the NPPF Review, we continue our call to view housing as foundational to the future economic growth of the country. 

“Housing should be right at home in the UK’s new modern Industrial Strategy as being critical to facilitating the growth which the Government desires.’

The acute shortage of high-quality rental homes is a significant driver for the Government, with demand far exceeding supply and rental prices being pushed higher. According to Savills, 30% fewer rental properties are available across the UK compared to the 2018–19 average. Planning consents for new homes have also dropped significantly, with estimates suggesting a sharp contraction in future supply. The number of new homes gaining planning consent has fallen below the current level of completions for the first time since the financial crisis of 2008-09.

The announcement of £3bn worth of support in guarantees to boost the supply of homes and support small house builders and developers has been welcomed by the sector, where it was revealed that this would go to SMEs and the build-to-rent sector in the form of “housing guarantee schemes to support the private housing market.”

Further support for the Build to Rent (BTR) sector in addressing the UK’s housing needs could involve setting specific targets for purpose-built rental homes within local authority housing goals, embracing a mixed-tenure approach to deliver housing for all.

BTR plays a significant role in fostering community development and accelerating delivery timelines, providing an essential platform to attract international investment into the UK.

References:

https://thearl.org.uk/news/arl-autumn-budget-2024-response/

https://www.savills.co.uk/research_articles/229130/365307-0

 

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