Landlords will be offered CGT exemption by Conservatives

There are always exceptions to the rule, but very few where tenants have purchased from their landlords.

They've probably costed this and factored in that the reason that people rent is they cannot afford or do not want to buy, so this pledge would cost them peanuts.

This is clearly a last ditch attempt from the Conservative party to win back some of their most loyal supporters, which they have screwed over time and time again since 2015. They have no hope in my opinion!

meaningless pledge.

Won't really make a lot of difference to any landlord who has a few properties as they are likely to be in a LTD company, and you don't pay CGT.

Will help those that have 1 or 2 properties in their own name and want to sell up (IE you are retiring) BUT would also need some kind of scheme that would give a tenant a 100% mortgage as most of the tenants I know don't have a pot to piss in.

ALSO, seems like the way supermarkets operate - put up the price of an item a few weeks before you reduce it in a sale - IE. charge extra 3% to buy a property then no CGT when you sell to a tenant. As can be seen the government are trying to fool us into thinking this is a give away - we have already paid for it.

Should be offering this to those landlords who have, for a minimum of 10 years, housed those who have been on housing benefits.

Most tenants renting do so because their income doesn’t stack up for mortgage borrowing.

Too little too late.
Why not simply remove the CGT surcharge?

As Mark implies, this is a cynical measure, no doubt based on the maximum potential uptake, when very few tenants would have the financial resources or the desire to buy their current rental property.

Not only that, how does this help HMO landlords?

No full expensing of business finance costs
No retirement relief
No pension relief on rental income
No more FHL relief

No wonder landlords are heading for the exit.

Many landlords feel let down as they struggle to help provide homes while politicians fail to address the housing crisis.

We need fully thought through housing policy covering all tenures which factor in the energy transition, an ageing population and fiscal policy to support it.

iHowz will be publishing their manifesto for the PRS later this week.

We have one that I floated the idea of selling to the guy who rents it from me when the current fixed rate deal expires in 2026. However my wife has changed jobs and is now just under the higher rate. Having never sold a property in the 14 years I've been a landlord I wasn't sure what it would entail. After research and consulting with our accountant the capital gains tax would make it unviable. This move would allow us to sell the property to tenant.

HOWEVER...

I feel it's just a last ditch attempt to garner support from the landlords they have screwed over for the last 10 years. Sorry guys, I'm voting Reform. It's too little, too late. I can't trust you. You've punished landlords no end. You are red dressed in blue.

Even if Reform don't get a single seat it is worth voting for them. It's not a "wasted vote" as some would have you believe. A good share of the vote for Reform will make the incoming government think long and hard about their policies. If the vote share is higher than Libdem, even if it hasn't translated into any seats then it's too big to ignore.

I'll be voting Reform!

The most effective way to increase private rented housing is to reset regulations and tax treatment to twenty years ago.

I actually like the idea. It’s certainly one that I’ve thought about before.

However, as with Right to Buy, some tenants will struggle to maintain their properties. Some will struggle to cope with fluctuating interest rates.

A significant number will be repossessed and bought by landlords and the cycle will start over again.

Another option could be to allow landlords to sell their properties to the tenant AND to provide the mortgage. Bear with me here. I appreciate that this is already an option.

The property would be valued and a price agreed. Landlord provides the mortgage and the property belongs to the tenant. All pretty normal except the landlord is providing the mortgage.

Former tenant becomes responsible for maintenance and repairs. This means the landlord doesn’t need as much income form the property as he did when he owned it.

The first £20k of interest paid to a landlord each year could be tax-free. This could follow ISA limits.

The tenant could have a repayment (example max LTV 99%) or interest only (example max LTV 80%) mortgage with the landlord.

Risks of default by the tenant could be insurable. Main risk being that the outstanding mortgage is more than the value of the property.

The mortgage could be sold to other providers should the ‘landlord’ need to release some or all of his capital.

Obviously, it will not be enacted but yet another not very bright scheme from the Tory.

Friends/Two landlords could rent from each other on an AST. Stay for 6 months and then sell to each other. 0 CGT?

🙂

Germany, the supposed renters paradise, offers cgt write off and IHT free transfers and there is NO 'faircwear and tear', a tenant gas to restore in full.