Developers and investors have called on the Government to give them an exemption from Stamp Duty rules on additional properties as part of a three-point plan to boost the build to rent sector.

The Better Renting Campaign, made up of institutionally backed developers and investors, has written to housing minister Brandon Lewis to highlighting ways the sector could provide 250,000 extra homes for renters.

Proposals from the group of 11 companies include setting aside an agreed proportion of public land for build to rent development and national recognition of Discount Market Rent, as trialled in some London boroughs, as an accepted form of affordable housing.

The letter, signed by firms such as Hermes Investment Management, La Salle Investment Management, Grainger, Essential Living and Realstar, perhaps more significantly calls on Chancellor George Osborne not to apply an additional 3% stamp duty charge to professional build to rent developments.

Last December, Osborne promised to only apply this to buy-to-let investors, but subsequently reversed this pledge. The group claims the move will dampen investor appetite to back the building of more homes.

The full list of signatories are Grainger Plc, Essential Living, LaSalle Investment Management, HUB, Fizzy Living, Real Star, Hermes Investment Management, BeHere. U+I, MODA and city law firm Mishcon de Reya.

Martin Bellinger, chief operating officer at Essential Living, said: “Until we face up to the fact that promoting home ownership at all costs will lead us nowhere, Britain will not overcome its housing shortage.

“The housing minister has been very supportive of Build to Rent, but what’s crucial is that the Prime Minister and Chancellor recognise the contribution this could make to helping them keep their promises on building a million homes by 2020.”

Helen Gordon, chief executive at Grainger Plc, the FTSE 250 landlord, said: “Our vision is for a better rental market, underpinned by good value for money for our customers, supporting economic growth and housing supply.

“We are looking to invest hundreds of millions of pounds into new rental homes, designed specifically for the renting, which we will directly manage for many years to come. It is important that the Government does all it can to allow us and companies like us to build more homes.”