The British Property Federation (BPF) has claimed victory in its campaign to boost residential investment following George Osborne’s announcement that stamp duty charged on residential portfolios will be charged on the average, not aggregate, price of the individual homes.

The BPF had been campaigning for the change, arguing that it would remove a major barrier to large scale investment in residential by institutions such as pension funds, many of whom have up to £1 billion to invest in the sector .

Ian Fletcher, director of policy at the British Property Federation, said: “This is impressive backing for a long-standing BPF campaign to have stamp duty on residential portfolio trades reformed. It will provide an important boost for the private rented sector and we hope will tip the balance in encouraging institutional funds into building homes. Using the average price is fairer and a welcome measure of support for those in need of rented housing.”””