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
Council funding to crack down on rogue landlords
English councils are set to receive additional funding and training to help tackle rogue landlords, ahead of taking on new responsibilities when renters’ rights reforms come into force next month. All 317 local authorities in England will share £41 million in funding, building on an earlier £18 million allocation made last autumn. The funding is…
Read More 
Fewer than 1 in 5 new properties securing buyer
New-build demand remains subdued as fewer than 1 in 5 homes find buyers in Q1 2026 The latest New-Build Stock and Demand Index from Property Inspect has found that demand for new-build homes remained subdued in the first quarter of 2026, with fewer than one in five new properties securing a buyer. New-build stock levels…
Read More 
Top five AML red flags in UK property transactions
Cash-heavy and internationally supported purchases continue to shape the UK market New data from client due diligence platform Thirdfort reveals the most common anti-money laundering (AML) red flags identified in UK property transactions. Analysis of more than 415,000 completed Source of Funds (SoF) checks shows that the top five red flags are: Savings mismatch – 43.04% Gifted…
Read More 
Discover Northern Ireland’s top emerging investment hotspots
Derry/ Londonderry and Fermanagh named Northern Ireland’s top emerging investment hotspots Northern Ireland’s emerging investment hotspots are delivering compelling opportunities for landlords in 2026, with new research from Belfast-based estate agency John Minnis revealing a shift in where investors are finding the strongest returns. Drawing on insights from the latest John Minnis Investment Guide, the…
Read More 
Breaking Property News 13/4/26
Daily bite-sized proptech and property news in partnership with Proptech-X. Why customisation matters more than capability Thought Leadership by Wes Snow CEO & Co-founder of Ascendix Technologies ‘There’s a persistent misconception that success with Artificial Intelligence comes down to selecting the most advanced or sophisticated tool. In reality, that’s not where the value lies. The real…
Read More 
First-time buyers pay extra £307m in stamp duty since relief ended
New Rightmove analysis reveals that since the end of the temporary relief measure in April 2025, first-time buyers in England have paid an estimated £307 million extra in stamp duty, averaging £4,618 more per buyer: The total estimated first-time buyer stamp duty bill over the past year was £408 million, versus £101 million the previous year In April 2025 the first-time buyer stamp duty threshold was lowered from £425,000 to £300,000. Before the change 62% of homes for sale were stamp-duty free for first-time buyers and that has…
Read More