New tax break for landlords announced by PM

Rishi Sunak says a Conservative government will give landlords selling to existing tenants relief from Capital Gains Tax for two years.

Prime Minister Rishi Sunak (main picture) announced a new tax cut for landlords as he launched the Conservative manifesto today.

If the Tories win the General Election next month they will introduce capital gains tax relief for landlords selling their property to tenants.

The temporary measure will be in place for two years in an attempt to give the housing market a boost.

Stamp Duty

Sunak also promised to abolish Stamp Duty for first-time buyers on properties worth up to £425,000, and to reintroduce the Help to Buy scheme.

FTBs with a 5% deposit will get help for up to 20% of the cost of a home, and the mortgage guarantee scheme will continue.

New homes

There is a commitment to build 1.6 million new homes in the next parliament by speeding up planning.

Conservative policy is to cap ground rents at £250 and then reduce it to a peppercorn level, as was promised in the Leasehold and Freehold Reform Bill before it was taken out.

Renters (Reform) Bill

The Renters (Reform) Bill will be revived with a renewed promise to scrap Section 21 ‘no fault’ evictions.

And councils will be given new powers to deal with holiday lets.

There’s still scope to go further in helping the majority of first-time buyers.”

Tim Bannister, Property Expert, Rightmove
Industry reaction

Tim Bannister, Rightmove’s Property Expert, says: “It’s good to see housing get more focus and attention. Some of the proposals announced this morning sound like a start, but there’s still scope to go further in helping the majority of first-time buyers or removing barriers to movement.

“Stamp duty reform is the number one change that home-owners and estate agents would like the next government to introduce, so it’s good that it’s being addressed,” he says.

“However, keeping the existing thresholds for first-time buyers is the minimum we would hope for, and an election would seem an ideal opportunity for greater change.

“The headline proposals don’t appear to support people looking to downsize, or address the significant regional differences in property prices, and therefore stamp duty.”

Nathan Emerson, Chief Executive, Propertymark

Nathan Emerson, CEO at Propertymark, says: “It is encouraging to see the Conservatives making a commitment to consumers via proposals to overhaul the threshold for when Stamp Duty is applicable.

“Propertymark is keen to see homeownership be a workable proposition and not an aspect that is ever out of reach,” he says.

“Propertymark awaits further clarity on how any ‘Help to Buy’ scheme would assist first-time buyers when taking their steps onto the housing ladder.

Ben Beadle - NRLA - image
Ben Beadle, CEO, NRLA

Ben Beadle, CEO at the NRLA, says: “Tenants who want to become homeowners should be supported to do so.

Whilst incentivising landlords to sell to existing tenants has the potential to help, it will not reverse the damage to the rental market caused by tax hikes under recent Conservative governments,” he says.

“As the Institute for Fiscal Studies has warned, changes to mortgage interest relief and the level of stamp duty paid by landlords have led to higher rents and stifled the supply of homes across the private rental market.

This comes at a time when the number of tenants enquiring about every available rental property has more than doubled compared with before the pandemic.”

Link to Anthony Codling
Anthony Codling, MD of Equity Research, RBC Capital Markets

Anthony Codling, MD of Equity Research at RBC Capital Markets, says: “Following the mini-budget of 2022 comes the big-manifesto of 2024, as the Conservatives seek to minimise the gap in the polls with big manifesto pledges.

“Playing into our seemingly ingrained and cultural love of property the conservatives are trying to win over renters, first time buyers and landlords alike whilst also rebuilding their relationships with the housebuilders through a combination of equity loans, tax breaks and increasing security of tenur,” he says.

“If the Conservatives win the election the housebuilders will benefit, but will the big pledges be big enough to bridge the big gap in the polls?”

Melanie Leech, CEO, BPF
Melanie Leech, CEO, British Property Federation

Melanie Leach, Chief Executive of the British Property Federation says, “We have a housing emergency and it is positive to see a commitment to 1.6m new homes over the next Parliament, which needs to be translated into a clear target. Importantly this includes explicit support for different forms of housing, particularly homes for older people. Our manifesto, ‘Building our Future’ sets out how we think half a million bedrooms could be released back into the market by 2030 by boosting the supply of older people’s housing that better meets the needs of the UK’s growing elderly population.

“While the abolition of Stamp Duty up to £425,000 and a new Help to Buy scheme will help affordability for some, we need a clear plan on how supply will be increased across all tenures and the whole country over and above building in the inner cities.

“We support the approach to renters’ reform. It is really important that abolition of S21 is done thoughtfully, accompanied by court reform, to maintain investment in the sector.”

Read the manifesto here


  1. “We know that they are lying, they know that they are lying, they even know that we know they are lying, we also know that they know we know they are lying too, they of course know that we certainly know they know we know they are lying too as well, but they are still lying. In our country, the lie has become not just moral category, but the pillar industry of this country.”

  2. Read Rishi Sunak’s manifesto promises by putting “This is what we should have done, we have failed to do and will continue to fail to do …” before the pledge and you have the complete picture. E.g. “We should have, we have failed to do and will continue to fail to do … stop the boats and cut immigration”. He’s an embarrassment to our Country, a dead man walking.

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