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)