Tories Propose Tax Incentives for Landlords and Support for Home Buyers

The Conservative Party is set to unveil its election manifesto today, highlighting plans to support homebuyers and property investors. Prime Minister Rishi Sunak is offering tax breaks to landlords to encourage investment in the housing sector and increase the supply of rental properties. A key proposal is the abolition of capital gains tax for landlords who sell their properties to tenants, a scheme designed to free up housing stock and assist long-term renters in becoming homeowners. This initiative will last for two years and excludes primary residences, which are already exempt from capital gains tax.

In addition to landlord incentives, Sunak's manifesto includes measures to help people buy homes. The Conservatives plan to reintroduce the Help to Buy scheme and abolish stamp duty for first-time buyers on properties valued under £425,000. These policies aim to address the housing shortage and support aspiring homeowners, particularly young people. Sunak emphasizes the importance of homeownership for financial security and societal stability, aligning with traditional Tory values of lower taxes and home-building.

Despite these proposals, the Conservatives will not promise to cut or eliminate inheritance tax, a move that some party members had hoped for. Sunak acknowledges that homeownership has become more challenging under Conservative rule but remains committed to making it more attainable. The manifesto also includes plans to amend planning rules to promote inner-city housing development, allowing cities like London to achieve higher population densities comparable to Paris and Barcelona.

Source: Property Industry Eye