The private rented sector should be expanded, according to a communities department report.

The Rugg Review, published last week, recommends changes to stamp duty to encourage institutional investment in rented homes, which could lead to the construction of more housing.

The report added that the government needed to grow the 鈥渂usiness of renting鈥�, but stopped short of recommending changes to the planning system to encourage a 鈥榖uild-to-let鈥� sector.

Ian Fletcher, the director of residential policy at the British Property Federation, said the review had failed to recognise the full value of institutional investment but added that it had 鈥渕ore positives than negatives鈥�.

The government has to decide which recommendations to include in its upcoming housing green paper.

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