Labour is planning a massive tax onslaught for landlords and property investors should the party win the next General Election.
A new study commissioned by the Labour Party proposes to end a ‘buy to let frenzy’ that has gripped the housing market by raising property taxes and changing tenancy laws in favour of private renters.
The aim is to democratise property
Top of Labour’s property wish list is scrapping grounds for landlords to evict tenants to sell or refurbish a home when the tenants has not broken the terms of a minimum three-year rent agreement.
After the first 36 months, landlords must prove grounds for eviction.
Capital gains tax also comes under fire.
The Land For The Many report demands CGT for second homes and investment properties should rise in line with income tax rates (20%/40%) from the current 18%/28% thresholds to encourage people to ‘seek more productive and socially beneficial ways to invest their money’.
Other recommendations include:
- Capping rent rises to inflation-linked annual increases
- Abolishing council tax in favour of a progressive property tax paid by owners not tenants
- Tougher buy to let mortgage regulation
- To campaign to stop investors treating land and homes as financial assets
A Labour spokesman said: “For too long, people across the country have had little or no say over the decisions that affect their communities and the places in which they live. So much of this can be traced back to the broken system of land ownership. Concentration of land in the hands of a few has led to unwanted developments, unaffordable house prices, financial crises and environmental degradation.
“Labour is committed to tackling these head on and delivering a fundamental shift in wealth and power from the few to the many.”