UK’s Housing Crisis Deepens as 1.4 Million Homes Sit Unbuilt
February 17, 2025
Cornerstone Tax reveals that 19% of tenants have been forced to move five times in less than five years due to landlords exiting the market
David Hannah, Group Chairman of Cornerstone Tax, urges the government to focus on addressing the wider housing affordability crisis by incentivising landlords
The government’s plan to develop 12 new towns is set to rely significantly on corporate landlords to meet its ambitious housing targets, with build-to-rent homes expected to comprise up to a quarter of the total properties. Each new town will feature at least 10,000 homes, and the growing shift towards build-to-rent is driven by developers prioritising long-term rental income over high sale prices, which are increasingly constrained by buyer affordability.
As the build-to-rent sector sustains its growth, doubling in size since 2021 and reaching 110,000 completed units, this could offer a viable alternative to the traditional housing market, which continues to face significant challenges. However, as 1.4 million approved homes left unbuilt, David Hannah, Group Chairman of Cornerstone Tax, calls on the government to reconsider its housing reforms and provide serious incentives for landlords to remain in the market.
David highlights how a record number of landlords are leaving the rental market, contributing to serious issue of supply and demand within the UK. Cornerstone’s research reveals that 19% of tenants have had to change rental properties five times in less than five years through no fault of their own as landlords are forced to either exit the market or pass on these record high mortgage costs onto their tenants. Moreover, as demand continues to outstrip supply within the market, 17% of tenants have also admitted that they have lost out on a property that they wanted to rent in the last two years due to a bidding war.
David also emphasises that the UK government has missed key opportunities to tackle the country’s growing housing crisis. These include failing to reduce the second home surcharge to, decreasing stamp duty thresholds, and not reinstating Multiple Dwellings Relief. Exclusive data from Cornerstone Tax further underscores the impact of these stamp duty reforms, revealing that 26% of Brits already aren’t unable to purchase property due to unaffordable stamp duty costs. Meanwhile, 15% of landlords are considering selling due to rising expenses, and 18% of prospective buy-to-let investors have been deterred by increasingly complex regulations.
Group Chairman of Cornerstone Tax, David Hannah comments:
“This year, the government must urgently recognise the ever-pressing need for drastic changes to the housing market. The previous government’s decision to abolish Multiple Dwellings Relief (MDR) was beyond counterproductive and will result in fewer new homes being built, with a significant drop in both domestic and overseas investment into housing delivery.
“By removing a critical tax break such as MDR and failing to incentivise landlords who are fleeing the market, the government’s refusal to reverse these policies undermines the build-to-rent sector, which relies heavily on such incentives to maintain and expand the housing supply. Furthermore, the increase in the second home surcharge and Stamp Duty thresholds reforms will not only reduce the stock of homes in the UK, but will make it harder for first-time buyers to get onto the property ladder.
“New policies need to promote affordability, accessibility and support for businesses building in Britain. The government must now listen to property firms and industry stakeholders to solve this vitally discouraging situation for Brits, otherwise this crisis will continue to cause chaos for years to come.”
You May Also Enjoy
Popping the Asking Price Bubble
Where in the Uk Can Buyers Snap Up Property Bargains and Where Properties Go for a Premium Above Asking Price New research from fast selling property company, Upstix has uncovered the UK’s most surprising postcodes for snapping up a property at bargain prices this year, highlighting a widening gap between sellers’ expectations and the…
Read More 
Highest demand to lease office space since pre-pandemic
The latest insights from the UK’s number one commercial property website Rightmove, reveals that the number of unique enquiries to lease office space is at its highest point since pre-pandemic, as businesses look for spaces that meet modern requirements. Demand to lease office space is 19% higher than the same period a year ago and…
Read More 
Planning consultations for major infrastructure to be streamlined
Robert Bruce, a planning and infrastructure partner at law firm Freeths LLP, said he: “Welcomed the change as a significant step to speeding up the DCO process and the focus on the quality and effectiveness of the consultation, rather than box ticking and a risk averse approach to pre-application consultation due to the current legal…
Read More 
‘The property ladder pulls further away’ warns Open Property Group
For many first-time buyers across England, the dream of homeownership continues to slip further out of reach. Despite rising wages, soaring house prices are making it harder than ever to get on the property ladder. A leading UK professional house buying company ‘Open Property Group’ based in Buckinghamshire UK, has raised concerns over the ongoing…
Read More 
How Long It Takes to Buy a House in the UK: 5 Common Delays That Can Slow Down Your Home Purchase
Wondering how long it takes to buy a house in the UK? The average timeline ranges from 8 to 22 weeks, but even that can stretch significantly due to unexpected delays, especially if you’re a first-time buyer or caught in a chain. That’s why working with experienced professionals like Belvoir — one of the UK’s…
Read More 
Rightmove to host Renters’ Rights Bill webinar with Guild of Lettings
Rightmove is hosting a live and interactive webinar session with the Guild of Lettings to help agents get Renters’ Rights Ready. The webinar will take place from 10:00am – 11:00am on Wednesday 23rd April. Susie Crolla, Managing Director for the Guild of Lettings, will be joining Rightmove to help agents with questions they may have about…
Read More