From 1 June 2024 multiple dwellings relief (MDR) will be a thing of the past after Jeremy Hunt abolished the tax break at the Budget last month, after an ‘external evaluation found no strong evidence’ that it was productive and ‘that it was being regularly abused’.

The group, led by the British Property Foundation (BPF) and the UK Single Family Association (UK SFA), warned that the need for housing in the country has never been so high, and the abolition could deter developers, as they say, ‘this measure appears counterproductive’.

The build-to-rent sector will be the worst affected as £40bn has been invested into this since the introduction of MDR in 2011.

An estimated 100,300 homes have been completed, and a further 54,000 are still under construction. 112,000 are in the process of planning, with the sector increasing by 17% in the final quarter of 2023.