Ministers are considering launching a new scheme to get ‘Generation Rent’ on the housing ladder as the Tories desperately try to woo back younger voters.
Theresa May has pledged to get the country building again as she makes tackling the housing crisis a key plank of her premiership.
And ministers are said to be looking at plans to create a new Help to Buy scheme for renters in private properties.
Under the plans, landlords would be encouraged to sell homes to tenants by being capital gains tax break.
So they would not have to pay the 28 per cent tax on their profits if the buyers had lived in the property for three years or more.
Senior Tories say the plan — due to be unveiled tomorrow by a Conservative think tank — has gone down so well in Number Ten that it could be in the Budget later this month.
Ministers are considering launching a new scheme to get ‘Generation Rent’ on the housing ladder as the Tories desperately try to woo back younger voters. Philip Hammond (pictured at Tory Party conference in Birmingham last week) could unveil housing plans in his Budget later this month
Current rules hit property sellers with a 28 per cent tax on the profits they make from selling a home.
Critics say this tax is a major disincentive for second home owners to sell up.
The plan, being pitched by the new think-tank Onward and reported in The Sunday Times, comes after minsters queued up at the Tory Party conference in Birmingham last week to say that tackling the housing crisis is the UK’s most pressing problem.
It comes amid reports that Mrs May is facing pressure from her Cabinet to relax laws that stop building on the greenbelt.
Treasury minister Liz Truss has publicly called for more building on Britain’s green belt and has often criticised nimbys who stop new development.
And today The Sunday Telegraph reported that a minister said that a majority of the Cabinet now supports a relaxation of rules governing the green belt ‘if done carefully’.
They said the ‘mood has changed’ in response to the housing crisis, which has seen property prices balloon so much that many Millennials may never get on the housing ladder.
Young voters deserted the Tory Party at the last election and overwhelmingly backed Jeremy Corbyn’s Labour.
And pollsters have warned the Tories that they may never win these voters over unless they can get them on the housing ladder.
Mrs May last week vowed to tackle the crisis in her speech at the Tory Party conference in Birmingham last week.
Theresa May (pictured today going to church with her husband Philip in Maidenhead) is facing pressure from her Cabinet to relax laws that stop building on the green belt
She said councils would be given the green light to borrow more money to build affordable housing.
The PM said local authorities would no longer be capped on how much they can borrow against their Housing Revenue Account assets – effectively leveraging current council homes to free up cash to build more.
She told the conference: ‘Solving the housing crisis is the biggest domestic policy challenge of our generation.
‘It doesn’t make sense to stop councils from playing their part in solving it.
‘So today I can announce that we are scrapping that cap.
‘We will help you get on the housing ladder and we will build the homes this country needs.’