The 100% capital gain tax relief would then be split equally between landlord and tenant, giving renters thousands of pounds towards a deposit and landlords a substantial tax saving. The Conservatives Help to Buy policy has been criticized for driving up demand without increasing supply. But tax cuts for buy-to-let investors are likely to be just as controversial - tenants' groups already think landlords have benefited enough from the property boom. Rent-to-buy, which aims to increase the Conservative party’s appeal to renting voters, is designed to help young adults get on the property ladder….
The average gain per property is estimated to be £15,000 so a first-time buyer could typically expect to gain £7,500 towards their deposit.
With higher property prices in the capital, Londoners could receive as much as £19,500 under the scheme.
88,000 households could benefit from the proposals each year - turning one million renters into homeowners over the course of five years.
Savings for taxpayers would be £1.32 billion per year in lost income to the Treasury.
"It is time for ministers to give private renters the chance to make their house a home, just as a Conservative government gave a previous generation of council tenants the Right to Buy their home years ago.”
“The Chancellor should use his budget to scrap the stamp duty levy on additional properties where landlords are prepared to invest in property, adding to the net supply of homes. To tax new housing supply, given the current housing crisis we face, is simply ludicrous.”
The Treasury did not respond to our request for comment!
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