Tories offer tax breaks for landlords and help for home buyers

Rishi Sunak

The Conservatives will put their offer to homebuyers and property investors when their election manifesto is published today.

Landlords are being offered tax breaks by Rishi Sunak as he attempts to encourage investment in the housing sector and boost the supply of much-needed housing in the PRS.

The prime minister will also unveil plans to help more people buy property today as he puts home ownership at the heart of the Conservative general election manifesto.

The Tories are expected to pledge to abolish capital gains tax for landlords who sell their property to tenants. The scheme would last two years.

The scheme is designed to convince landlords to free up more housing stock, and also benefit long-term renters by increasing their chances of getting on to the housing ladder.

The approach would not apply to someone’s primary residence, since that already is exempted from capital gains tax.

Sunak will also pledge to reintroduce the Help to Buy scheme and a vow to abolish stamp duty for first-time buyers on properties worth less than £425,000 in the manifesto.

The policies are an attempt by Sunak to return to traditional Tory strengths of cutting taxes and building homes, after years of a rising tax burden and housing shortages.

Sunak will say: “We Conservatives have had to take difficult decisions because of Covid. But we are now cutting taxes for earners, parents and pensioners.

“We are the party of Margaret Thatcher and Nigel Lawson, a party, unlike Labour, that believes in sound money.

“In this party, we believe that it is morally right that those who can work do work, and that hard work is rewarded with people being able to keep more of their own money. We will ensure that we have lower welfare so we can lower taxes.”

However, the Tories will not promise to cut or scrap inheritance tax, according to multiple sources, to the disappointment of some Conservatives who have long called for the move.

In an interview with the BBC yesterday, Sunak admitted that owning a home “has got harder” under the Conservatives.

The manifesto will also include a promise to change planning rules to boost inner city home building so places such as London are allowed to become as densely populated as European cities like Paris and Barcelona.

Writing for The Telegraph on his housing proposals, Sunak said: “For too many of our young people, no matter how hard they work, home ownership can seem out of reach.  I remember getting the keys to my first flat – it’s a special memory to me.

“And, like millions before and millions after me, it is a moment which I will always treasure. I want as many people as possible to have this opportunity, to feel that sense of ownership.

“Owning a home makes people more financially secure, gives them a stake in society and, as Thatcher said, is one of the main bulwarks of individual freedom.”

 

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10 Comments

  1. jeremy1960

    In 35+ years, I can only recall a landlord to tenant sale happening once! Not many will benefit ,another empty promise?

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    1. Isa B Agent

      I have got two going through right now.

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    2. KByfield04

      We are handling 2 of these atm

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  2. RCM1962

    Too late Rishi. Go away!

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    1. jan-byers

      mug

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  3. CountryLass

    As long as it is ORIGINAL Help to Buy, which applied to old and new builds, then this will be helpful. I bought my first property using the original scheme, 10 years later I sold it for the same as I had bought it for (bought in 2005, I’m happy I sold it for what I did!) but I had 10 years of equity built up that allowed me to pay back the 25% I had borrowed from the government and still have a 10% deposit for m next property.

    The ‘new build only’ version did nothing to help the housing market, and just put money in the pockets of builders and the back pockets of unscrupulous local officials…

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  4. KByfield04

    In other news, party that implemented S24 off ers landlords ‘tax breaks’. This lot flip flop more than an aussie on hot sand!

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  5. Anonymous Coward

    Could someone be trying to buy your vote, I wonder…

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    1. AcornsRNuts

      You are implying that politicians are honourable people. shame on you! ROFL.

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  6. paul.bartlett33

    So the obvious step to repeal the dreadful Osbourne Section 24 Finance Act was too sensible for the Tories, as everyone knows that Property is not a Business..

    Just as well that they are now irrelevant for us having no chance of election..

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