BPF urges government help to boost Build-to-Rent supply

The British Property Federation (BPF) is urging the Chancellor to use the Spring Statement to reinstate Multiple Dwellings Relief, arguing the move would unlock stalled schemes and increase Treasury receipts.

Doing so would, the organisation claims, help the government meets its housing targets.

The BPF says the abolition of MDR in 2024 removed a bulk purchase relief within the Stamp Duty Land Tax regime across England and Northern Ireland.

Up to 25,000 build-to-rent homes were either stalled or rendered unviable as a direct result, based on its estimates.

Undermines new home viability

The BPF’s chief executive, Melanie Leech, said: “The tax system is undermining the viability of much needed new homes in London and across the country.

“An extremely cost-effective way of unlocking viability and enabling stalled housing to proceed to construction would be through the reinstatement of targeted MDR.

“Given the combination of fiscal pressures and low housing numbers the government is facing this is a simple lever to pull that would help address the viability crisis and increase Treasury returns.”

She added: “We urge the Chancellor to act now rather than delay to the Autumn, when the housing delivery numbers will be as stark for 2026 as they have been for 2025.”

Tax revenue boost

A revised, targeted MDR structure focused on the BtR sector would cost the government around £155m, the BPF said.

However, if it enabled delivery of the estimated 25,000 homes affected, wider economic activity could generate roughly £650m in tax revenues.

Construction data points to a sharp slowdown with only 613 new BtR homes starting construction in London last year – an 80% drop on 2024’s levels.

Regional starts fell by 37%, declining from 12,781 units to 8,063, based on figures compiled by the BPF and Savills.

National housing target

Viability pressures were cited as a primary factor behind the slowdown with the same constraints expected to continue into 2026.

That will have implications for national housing delivery targets.

The removal of MDR wiped an estimated £4bn from Build-to-Rent portfolio valuations, the federation said, reducing sector firepower for new schemes.

It added that targeted relief would rebalance tax treatment between large, high-density developments and smaller scale projects.

That equalisation, it argues, would support purpose-built rental delivery while representing value for money for the Exchequer.