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
No acceleration in rental EPC improvements despite policy push
Rightmove’s 2025 Greener Homes Report reveals: Energy efficiency of homes continues to steadily improve, but slowly: Rental sector stock still more energy efficient than resale stock Both markets have seen a 3% year-on-year jump in proportion of homes with at least an EPC rating of C (58% of homes for rent, 46% of homes for…
Read More 
London renters making it onto the ladder without a deposit
Developers helping London renters onto the property ladder without a deposit, when the Government won’t The latest insight from London’s largest lettings and sales estate agent brand, Foxtons, has revealed that despite the Government providing no new support in the recent Budget for first time buyers, a growing collaboration between developers and lenders is helping…
Read More 
Prime London Sees Post-Budget Surge in £2m+ Listings
The latest research from prime London property experts, Jefferies London, reveals that, just two weeks on from the Autumn Budget and its newly announced prime property surcharges, an estimated 444 homes priced at £2m or more have been listed for sale across the capital. These new listings account for around one in 10 (9%) of…
Read More 
2026 Will Test BTR’s Potential and Government’s Resolve
By Justine Edmonds, Head of Build to Rent / Leasing Strategies, LRG Throughout 2025 I have spent hours in meetings with and on discussion panels with institutional investors, developers and local authorities. And everything I’ve picked up on in the last year suggests that 2026 will be a crossroads for Build to Rent (BTR). The…
Read More 
December Cash Buyers on the Decline
So is a sale before Christmas still possible? New analysis from Springbok Properties reveals that the number of cash buyers declines in December, so any sellers who are keen to secure a quick sale ahead of Christmas might need to explore different avenues. Springbok Properties have studied historic data on the estimated number of cash…
Read More 
Breaking Property News 10/12/25
Daily bite-sized proptech and property news in partnership with Proptech-X. Fine & Country welcomes back Managing Director Nicky Stevenson Fine & Country is pleased to announce the return of Managing Director, Nicky Stevenson, following her maternity leave. Stevenson, who has played a central role in driving the brand’s growth and strengthening its position in…
Read More