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
Northern Ireland emerging as one of the UK’s most attractive long-term rental investments
Northern Ireland rents have increased by approximately 51% over the past five years Tenant enquiries have risen by approximately 33%, highlighting continued demand for quality rental accommodation. Four of the five fastest-growing housing markets in the UK are located in Northern Ireland 26% of landlords in England sold at least one rental property during 2024,…
Read More 
Homebuyers demand same-day conveyancing updates
New research from Lyons Bowe solicitors reveals that Britain’s homebuyers have little tolerance for poor communication during the conveyancing process, with buyers increasingly expecting same-day updates, prompt responses, and swift notification of any issues that could impact their purchase. The survey of current and recent homebuyers who have purchased a property within the last two years,…
Read More 
Breaking Property News 25/6/26
Daily bite-sized proptech and property news in partnership with Proptech-X. Detecting property moisture defects without invasive or damaging procedures BEST Training, a specialist CPD provider for the built environment, has now launched Module 2 of its advanced course series: Investigating Moisture in Traditional Buildings. The module offers an end-to-end diagnostic curriculum for professionals working…
Read More 
How Wimbledon property compares to other Grand Slam locations
The latest research from Benham and Reeves has revealed that property values in Wimbledon, home to the Wimbledon serves up more subdued house price growth than fellow Grand Slam locations The latest research from Benham and Reeves has revealed that property values in Wimbledon, home to the world’s most prestigious tennis tournament, have fallen by…
Read More 
Interest rates matter, but asking price is still what sells a home
Homes priced right first time find a buyer in around five weeks, while overpriced homes take three months longer, and new LRG research shows what buyers are looking for. The Bank of England’s latest decision to hold interest rates is welcome news for buyers and sellers, providing greater stability and confidence for those considering a…
Read More 
Three-bedroom homes dominate Britain’s quick-sale market
The latest industry insight from the House Buyer Bureau reveals that the East and West Midlands are Britain’s quick sale hotspots, with three-bedroom homes proving the most common property type when it comes to quick-sale activity. House Buyer Bureau’s internal data* shows that in 2025 the company had contact with, and made a firm offer…
Read More