Reform pledges tax-free buy to let homes

Reform has promised landlords a decade without tax on rent from qualifying new-build homes as part of a plan to revive buy to let and increase housebuilding.

The proposal would also remove stamp duty and capital gains tax from new homes built on brownfield sites, with the party preparing to consult on the policy.

Deputy leader Richard Tice made the announcement at the party’s conference, and he believes the incentives could unlock another 20,000 homes a year on former industrial and commercial land.

That would be equivalent to a 10% increase on current national housebuilding rates.

Tax breaks for landlords

Mr Tice said the 10-year tax exemption would apply whether the property was held personally or through a company.

He told the conference: “Planning, it takes too long. It’s too expensive, and the risk is too high too early in the process.

“And that’s led to what we’re seeing today, which is a collapse in the number of housing completions all over the country.”

Mr Tice added: “We’ve got a planning crisis.”

Affordable housing rules

Reform also wants to scrap affordable housing requirements on sites outside London, Birmingham, Manchester and Leeds.

That would remove Section 106 contributions from qualifying schemes, which currently help fund more than half of the affordable housing delivered in England.

The party estimates its proposed tax exemptions would cost just over £1bn in lost receipts.

It argues that tax incentives could encourage development without the government having to provide grants or subsidies.

Listed building changes

The proposals would also loosen some restrictions affecting Grade II listed buildings, making internal refurbishment or alterations easier.

Reform wants more building work directed towards previously developed land rather than greenfield sites, despite brownfield schemes often being complicated and expensive to bring forward.

Mr Tice said town centres were facing a crisis while too much building was taking place on greenfield land.

The party says making new build projects more financially attractive could bring developers and buy to let investors back into schemes that might otherwise remain unviable.