The Better Renting for Britain campaign have called for professional investors to be made exempt from the 3% Stamp Duty surcharge.
Some of the most recognisable investors in the country have written an open letter to the Housing Minister Brandon Lewis. The letter asks for an exemption from the extra surcharge, introduced on April 1st.
Stamp Duty
Institutional investors who have invested significant sums of cash in Build to Rent schemes were deterred when Chancellor Osborne announced that they would be subjected to the additional charge.
The letter to Mr Lewis has been signed by 11 companies and outlines a three-point action plan that could see 250,000 additional homes built for rent. This in turn would help to deliver on its promise to build one million homes by 2020.
Signatories to the letter include Grainger Plc, Essential Living, LaSalle Investment Management, Fizzing Living and Hermes Investment Management.
Facing facts
Martin Bellinger, chief operating officer at Essential Living said, ‘until we face up to the fact that promoting home ownership at all costs will lead us nowhere, Britain will not overcome its housing shortage. The housing minister has been very supportive of Build to Rent, but what’s crucial is that the prime minister and chancellor recognise the contribution this could make to helping them keep their promises on building a million homes by 2020.’[1]
Helen Gordon, chief executive at Grainger Plc, feels that it is vital that the Government does all it can to housebuilders to develop more homes.
Gordon said, ‘our vision is for a better rental market, underpinned by good value for money for our customers, supporting economic growth and housing supply. We are looking to invest hundreds of millions of pounds into new rental homes, designed specifically for the renting, which we will directly manage for many years to come.’[1]
Stamp Duty should be scrapped for professional investors
Potential
Chris Taylor, head of private markets at Hermes Investment Management, believes that experience from countries such as Germany and Holland shows that there is potential for a profitable Build to Rent market here in the UK.
Mr Taylor said, ‘crucially, this investment will typically be long term institutional programmes committed to providing institutional quality and professionally maintained, purpose built rental blocks. Designating sites as suitable for Build to Rent in local plans, as well as identifying public land sites, will greatly assist new supply.’[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2016/6/investors-want-extra-stamp-duty-scrapped