Former Cabinet minister Dominic Raab has thrown his hat into the ring to become the new Tory leader with a mini-housing manifesto.
He is courting favour from millions of landlord and tenant voters by promising to give renters a share of any capital gains tax paid by their landlords and to scrap stamp duty on homes worth less than £500,000.
The idea is to split the CGT proceeds landlords pay – with a third going to the property owner and the rest to the tenants.
The idea is to give sitting tenants a deposit to buy their own home.
“Successive governments haven’t been radical enough in taking on the vested interests to get enough homes built to keep them affordable. Having served as housing minister, I saw that challenge first-hand – and understand the radical reforms a pioneering Conservative government must deliver, to give working Britain a fairer deal,” said Raab, who served as Housing and Planning Minister for six months in 2018.
“”For private renters, we should encourage landlords to sell to sitting tenants by allowing a rebate on Capital Gains Tax on the sale, up to £35,000.”
With most landlords, that would mean a saving of just under £12,000 CGT on the sale of a buy to let home.
Raab proposed the stamp duty cut when he was a back-bencher some years ago without winning support from the government.
He is also advocating penalties for house builders who fail to build homes as fast as promised.
He faces a battle for backing to secure the Tory party leadership from Home Secretary Sajid Javid, Work and Pensions Secretary Amber Rudd and Treasury Chief Secretary Liz Truss. The trio have all confirmed they are considering a bid for leadership.