Conservative Manifesto – Ban S21 and strengthen rights of possessionMake Text Bigger
The Conservative Party have released their 2019 general election manifesto. This has been very briefly summarised with the key points of interest for Landlords and the PRS industry. Download the full manifesto here
For the Private Rental Sector:
The Conservatives say they will bring a ‘Better Deal for Renters’ by abolishing ‘no fault’ evictions – Section 21
Tenants will be protected from revenge evictions and good landlords will have their rights of possession strengthened.
Renters will be able to have Lifetime Rental Deposits which can be transferred from one rental property to another, making the process of moving home easier and cheaper.
A Stamp Duty Land Tax surcharge levied at 3% will be introduced for non UK tax residents applying to companies as well as individuals. The measure will raise up to £120 million a year, and this money will be directed at programmes to help tackle rough sleeping.
The surcharge will be levied on top of all other stamp duty payable, including the higher levels of stamp duty introduced in April 2016, on second home and buy-to-let purchases. This starts at a combined:
- 3% for homes valued below £125,000
- 5% on the next portion between £125,001 and £250,000
- 8% on the portion between £250,001 and £925,000
- 13% on the portion between £925,001 and £1.5 million
- 15% above that
“At present, foreign individuals and companies who are not tax resident in the UK are able to buy homes as easily as those who live here. They are often bought by wealthy individuals or companies and kept as investments or rented out at inflated prices: a recent study showed that 13% of new London homes were bought by non-residents in 2014 to 2016. This adds significant amounts of demand to limited supply, inflating house prices and making it harder for people in Britain looking to get a foot on the property ladder.”
The Conservatives plan to increase home ownership levels by:
- Delivering at least another million homes in the next five years, making further progress towards the target of 300,000 new houses a year by the mid-2020s.
- Helping renters to buy. There are currently 2 million renters who could afford mortgage payments but struggle to save for a deposit. A new market in long-term fixed rate mortgages, requiring only 5% deposits, will make it easier for them to buy.
- Providing discounts for local first-time buyers. Under a new First Home scheme, homes will be sold at a 30 per cent discount to local first-time buyers.
Reforms to leasehold will continue including implementing the ban on the sale of new leasehold homes, restricting ground rents to a peppercorn, and providing necessary mechanisms of redress for tenants.
“We promise not to raise the rates of income tax, National Insurance or VAT. This is a tax guarantee that will protect the incomes of hard-working families across the next Parliament.”
“We not only want to freeze taxes, but to cut them too. We will raise the National Insurance threshold to £9,500 next year – representing a tax cut for 31 million workers. Our ultimate ambition is to ensure that the first £12,500 you earn is completely free of tax – which would put almost £500 per year in people’s pockets.”
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