Following on from our “Property Investment under Labour ” blog post, we have taken the liberty of looking at the Conservative manifesto, and compiled a list of proposed policies that may have an effect on property investment:
- Plans to introduce long-term fixed-rate mortgages.
- Non-UK residents would incur a stamp duty surcharge.
- ‘No fault’ evictions would be abolished – in other words, get rid of Section 21.
- Good landlords would get greater rights of possession.
- Plans to enable councils to discount homes in perpetuity by a third for local people who cannot otherwise afford to buy in their area. They could use this to prioritise the likes of police, nurses and teachers.
- Maintain a commitment to Right to Buy for council and housing association tenants.
- Shared ownership products would be simplified by setting a single standard for all housing associations.
- The sale of new leasehold homes would be banned.
- Plans to get closer to the target of building 300,000 homes a year by the mid-2020s, building at least a million more homes over the next parliament.
- Plans to simplify the planning system for the public and small builders.
- Planning rules would be amended so infrastructure like roads, schools, and GP surgeries come before people move into new homes, using a £10bn Single Housing Infrastructure Fund.
- Plans for a £868 increase to the National Insurance primary threshold to £9,500.
- No increases to income tax, National Insurance contributions (NIC) and VAT under their “Triple Tax Lock”.
- Companies would not benefit from the further reduction to corporation tax to 17% from April 2020 and the rate will remain at the current 19%.
- A proposed increase to the Employment Allowance for small businesses – this is currently worth £3,000 in National Insurance savings for employers. The manifesto does not provide any detail on the amount of increase.
- The research & development tax credit would increase to 13%. There will also be a review on the definition of “research & development” to allow potentially more expenditure to qualify.
- A proposed review of Entrepreneurs Relief.
- A proposed 3% stamp duty land tax (SDLT) surcharge on non-UK residents purchasing UK residential property, with possible additional SDLT charge of up to 18% for foreign residents purchasing UK residential property.