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
Rightmove asks government to carefully consider property tax changes
The UK’s largest property platform Rightmove is asking the government to carefully consider the impact of any changes to property taxation to avoid unintended consequences which would risk stalling parts of the market. Key data National property tax Just under a third (30%) of homes for sale in England are priced at over £500,000, and…
Read More 
Get Fast and Reliable Basement Flood Cleaning Services
Having water in your basement is awful. It could be because of a storm, busted pipe, or bad sump pump. Whatever the reason, water damage in your basement has disastrous effects if not dealt with. Basement Flood Cleaning Services are what you need. They will dry it out, disinfect the floor, and have your basement…
Read More 
Breaking Property News 21/08/25
Daily bite-sized proptech and property news in partnership with Proptech-X. Providing comprehensive, predictive operational intelligence across all aspects of building operations JLL (NYSE: JLL) this week introduced artificial intelligence (AI) capabilities that are now available as an add-on to Prism, its award-winning building operations platform. As part of JLL’s property management technology ecosystem powered by…
Read More 
UK House Price Index summary: June 2025
The average monthly rate of house price growth in June was 1.4%. The average annual rate of house price growth in June was 3.7%, up from 2.7% in May. As a result, the average UK house price remains at £269,000. CEO of Yopa, Verona Frankish, commented: “June’s figures reflect a market that is steadily…
Read More 
Private rent and house prices, UK: August 2025
Average UK monthly private rents increased by 5.9%, to £1,343, in the 12 months to July 2025 (provisional estimate); this annual growth rate is down from 6.7% in the 12 months to June 2025. Average rents increased to £1,398 (6.0%) in England, £807 (7.9%) in Wales, and £999 (3.6%) in Scotland, in the 12 months…
Read More 
Industry response to latest inflation figures
Nathan Emerson, CEO of Propertymark, comments: “Unfortunately, any increase seen within the rate of inflation does brings very justified concerns to consumers, many of whom are still struggling with the cost of living, which has been steadily rising over the past few years. “Although there is more work to be done to help ensure inflation…
Read More