Knight Frank’s latest market update says build-to-rent investment reached a record level, but delivery is still lagging demand. The report highlights that viability pressures, especially in regional markets, are limiting completions and slowing progress on schemes outside major cities.
The article argues that the Renters’ Rights Act is already affecting the rental market, with Foxtons reporting lower revenue and Savills saying landlords in prime London are raising rents to offset higher costs and administration. It also suggests the legislation is contributing to earlier tenant move-outs, an expectation gap between landlords and tenants, and some landlords considering selling rather than continuing to let.
The article reports that former Bank of England Deputy Governor Sir John Gieve has backed the case for a Land Value Tax, arguing that existing property taxes such as Council Tax and Stamp Duty are outdated and distortive. It also notes that any reform would likely need to be phased in over three to five years, with potential implications for higher-value markets such as London and the South East.
Landlords in Scotland are reportedly facing long delays of eight to 12 months to obtain possession orders through the housing tribunal, with legal costs potentially reaching around £10,000 before cases are resolved. The article says these delays, alongside rising costs and regulation, are contributing to some landlords selling up and reducing rental supply.
Hamptons reports that landlord sales have slowed after the Renters’ Rights Act, with more landlord purchases than sales recorded in June for the first time since 2019. The research suggests the new 12-month re-letting ban after serving notice to sell may be making landlords more cautious, particularly where sales are slower and failed sales are more common, such as in flats and in London and the South.
The article reports criticism from the Conservatives of Andy Burnham’s proposed property tax reforms, including a land value tax and a flat annual levy to replace Council Tax and Stamp Duty. Shadow Chancellor Mel Stride argues the proposals would amount to a significant tax rise for family homes and would require regular valuation of millions of properties, creating uncertainty and disputes.
