## Government urged to reinstate Multiple Dwellings Relief for Build-to-Rent

The British Property Federation (BPF) has urged the Chancellor to use the upcoming Spring Statement to reinstate Multiple Dwellings Relief (MDR), a tax relief that was abolished in 2024. The BPF argues that reinstating MDR would unlock numerous stalled Build-to-Rent (BtR) schemes across England and Northern Ireland, helping the government meet its housing delivery targets while increasing tax revenues.

MDR previously provided a bulk purchase relief within the Stamp Duty Land Tax (SDLT) framework, which supported the viability of large-scale residential developments. Its removal has directly impacted the BtR sector, with the BPF estimating that up to 25,000 BtR homes have been stalled or rendered unviable as a result.

## Impact on Build-to-Rent viability and housing delivery

Melanie Leech, Chief Executive of the BPF, highlighted the detrimental effect of the current tax system on new housing supply. She stated:
“The tax system is undermining the viability of much needed new homes in London and across the country. An extremely cost-effective way of unlocking viability and enabling stalled housing to proceed to construction would be through the reinstatement of targeted MDR.”

Leech emphasised the urgency of government action, urging the Chancellor to act in the Spring Statement rather than delay until the Autumn. She warned that housing delivery figures for 2026 would be as concerning as those for 2025 if no intervention occurs.

## Financial implications for government and sector

The BPF estimates that a revised, targeted MDR focused on the BtR sector would cost the government approximately £155 million. However, enabling the delivery of the estimated 25,000 affected homes could stimulate wider economic activity, generating around £650 million in tax revenues.

Data from the BPF and Savills reveals a sharp slowdown in BtR construction starts. In London, only 613 new BtR homes began construction last year, marking an 80% decrease compared to 2024. Regional starts also declined by 37%, falling from 12,781 units to 8,063.

## Consequences for national housing targets and sector valuations

Viability pressures are cited as a primary cause of the slowdown, with expectations that these constraints will persist into 2026. This slowdown threatens the government’s national housing delivery targets.

The removal of MDR has also had a significant impact on BtR portfolio valuations, wiping an estimated £4 billion from sector value. This reduction diminishes the financial capacity of developers to fund new schemes.

The BPF argues that reinstating targeted MDR would rebalance tax treatment between large, high-density developments and smaller projects. This equalisation would support purpose-built rental housing delivery while representing value for money for the Exchequer.

## What this means for landlords and agents

For landlords and letting agents, the reinstatement of MDR could lead to an increase in the supply of purpose-built rental homes, helping to meet tenant demand in key urban areas. Improved viability for developers may translate into more BtR schemes progressing to construction, potentially easing rental market pressures.

Conversely, continued absence of this relief risks further delays in new housing supply, which could exacerbate affordability and availability challenges within the private rented sector.

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Suggested internal link anchors

– Build-to-Rent developments
– Stamp Duty Land Tax relief
– Housing delivery targets
– Property investment viability
– Purpose-built rental homes
– Construction starts data
– Tax relief for landlords
– Residential development schemes
– Private rented sector supply
– Portfolio valuations impact

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TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/