The Liberal Democrats have proposed linking Stamp Duty to the energy rating of a property as the party sets out its election manifesto.
The party’s central policy is to stop Brexit but its manifesto includes several pledges for the property market if the Lib Dems were to form a government, including building 300,000 homes a year by 2024.
The manifesto proposes graduating Stamp Duty by the energy rating of the property and allowing local authorities to increase council tax by up to 500% where homes are being bought as second homes.
The party said it would introduce a Stamp Duty surcharge on overseas residents purchasing second homes.
There is also another change that would hit landlords as the party has proposed abolishing the Capital Gains Tax-free allowance and instead taxing gains and salaries through a single unspecified allowance.
The document includes support for renters, with plans to establish a new Help to Rent scheme to provide government-backed tenancy deposit loans for all first-time renters under 30.
The LibDems said they would also promote longer tenancies of three years or more with an inflation-linked annual rent increase built in.