Land Tax will prove a further burden

Linden Homes are concerned that the Governments proposal to introduce a Land Development Tax could further restrict the supply of new homes in the UK.

The tax would consist of a planning gain supplement imposed on land when planning permission is granted, to reflect the vast increase in its value.

A company spokesperson said: "In order to deliver a better functioning housing market, the Government and local councils must strive to free up land for development, enabling house builders to respond to market demand. They should not be considering measures that will further restrict the supply of housing in the UK."

More private rented accommodation may be needed

Fresh research has led the Association of Residential Letting Agents (ARLA) to believe that strong demand for rental property could lead to a shortage of supply.

ARLA's chief executive, Adrian Turner said: "This very healthy balance between supply and demand could well indicate that it may not be long before there is a shortage of property in the private rented sector. If we cannot maintain a degree of surplus capacity, the rental market could need additional property very urgently."