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The Conservative Party will publish its election manifesto today, setting out its offers to home buyers and property investors.
Tax cuts have been offered to landlords as Chancellor of the Exchequer Rishi Sunak seeks to encourage investment in the housing sector and increase the supply of much-needed homes under the PRS.
The Chancellor has put home ownership at the heart of the Conservative party’s general election manifesto and is also due to announce plans to boost home ownership today.
The Conservatives are expected to promise to scrap capital gains tax when landlords sell properties to tenants, a scheme that is set to last for two years.
The scheme is designed to encourage landlords to free up housing stock and benefit long-term leaseholders by improving their chances of purchasing a home.
This approach does not apply to an individual’s principal residence, because a principal residence is already exempt from capital gains tax.
In his manifesto, Mr Sunak also promises to reintroduce Help to Buy and abolish stamp duty for first-time buyers on properties worth less than £425,000.
The policies are an attempt by Mr Sunak to return to traditional Conservative strengths: tax cuts and housebuilding, after years of rising taxes and a housing shortage.
Mr Sunak will say: “We as a Conservative party have had to take difficult decisions because of Covid-19, but we are now delivering tax cuts for workers, parents and pensioners.”
“We are the party of Margaret Thatcher and Nigel Lawson and, unlike Labour, we are a party that believes in sound currency.”
“This party believes that it is morally right for those who can work to work, and that hard work should be rewarded with people getting more money for themselves. We will cut welfare and lower taxes.”
However, sources said the Conservatives will not commit to reducing or abolishing inheritance tax, disappointing some Conservative members who have long called for the move.
Speaking to the BBC yesterday, Mr Sunak acknowledged that home ownership had become “harder” under the Conservative government.
The manifesto also includes a promise to change urban planning rules to boost inner-city housing construction and allow cities such as London to become as densely populated as European cities such as Paris and Barcelona.
Writing in the Telegraph about his housing proposals, Mr Sunak said: “For many young people, no matter how hard they work, home ownership seems out of reach. I remember getting the keys to my first apartment – it’s a special memory for me.”
“And like millions before me and millions after me, this is a moment I will cherish forever. I want as many people as possible to have this opportunity and feel a sense of ownership.”
“Homeownership gives people economic security and status as part of society and is, as Thatcher said, one of the chief bulwarks of individual liberty.”