Copy article

Reform 'Contract' - stamp duty and housing: "Does anyone need to be reminded of the Truss/Kwarteng debacle?"

ended 17. June 2024

Reform has published its ‘contract’ today. In terms of the property and housing market, key points below. Newspage asked experts for their views, bottom.

  • Cut Residential Stamp Duty: Substantially boost economic activity and housebuilding by cutting Stamp Duty to 0% below £750k. Cut it to 2% from £750k - £1.5m and cut it to 4% over £1.5m.
  • Review the Planning System: Fast-track planning and tax incentives for development of brownfield sites. ‘Loose fit planning’ policy for large residential developments with pre- approved guidelines and developer requirements.
  • Reform Social Housing Law: Prioritise local people and those who have paid into the system. Foreign nationals must go to the back of the queue. Not the front.
  • Scrap section 24 for Landlords: The tax system should encourage smaller landlords into the rental markets. Not penalise them. We will
  • “Affordable homes for hard-working British people.”: Restore landlords’ rights to deduct finance costs and mortgage interest from tax on rental income.
  • Abolish the Renters’ (Reform) Bill: Existing legislation was inadequate to address bad practices. Instead, we will boost the monitoring, appeals and enforcement process for renters with grievances.
  • Protection for Leaseholders: All potential charges for leasehold or freehold residents must be clearly stated and consented to. Enforce Section 106 agreements. Ensure it is cheaper and easier to extend leases to 990 years and buy freeholds.
  • Incentivise Use of New Construction Technology: We will incentivise innovation to speed up building: modular construction, digital technology and building sites that improve efficiency and cut waste.

10 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Simon Bridgland
Director at Charwin Private Clients
For the housing sector, Reform's contract is a humdinger. Love him or loathe him, it will be very interesting to see how the polls predict the election now that Farage's party has announced its contract. I would now expect to see a further swing of favour to the Reform Party. Behind closed doors the Tory party will be reeling from this.
Star Quote
Copy

Editor
Ben Perks
Managing Director at Orchard Financial Advisers
Scrapping Section 24 for landlords is a good policy. Allowing landlords to off-set financial costs and mortgage interest will help to alleviate the burden of the higher rates and fees they are now paying. In turn, this could reduce the rents that they charge their tenants. This would be a welcome change given the ever-increasing rents that many tenants are experiencing.
Star Quote
Copy

Editor
Rohit Kohli
Director at The Mortgage Stop
Whilst I find myself in agreement with the changes to Section 24, when you are not likely to get anywhere near power it's really easy to make headline-grabbing, unrealistic and unfunded promises without any clear plan of how they are to be delivered. Does anyone need to be reminded of the Truss/Kwarteng debacle? This has the potential to make the markets' response to that appear like a minor economic blip.
Star Quote
Copy

Editor
Justin Moy
Managing Director at EHF Mortgages
Reading Reform's contract is like buying a bag of pick n' mix and finding only the sweets you love. Not a toffee in sight. There's plenty to relish in this ‘contract’ but it could be too revolutionary for the economy. Supporting private landlords is hugely important to help any social housing plans, so bringing back some of those financial benefits is welcome. Of course, how much of this contract would stick in a coalition government?
Star Quote
Copy

Donia Youssef
Director at Monster Publishing & Productions
As a landlord with over 15 years of experience, I recently sold my portfolio due to rising interest rates and penalty charges. The proposed reforms, especially abolishing Section 24, are much needed. The current tax system has been punitive, driving smaller landlords out of the market. Allowing deductions for finance costs and mortgage interest would encourage more investment in rental properties. Cutting residential stamp duty and fast-tracking the planning system are smart moves that will stimulate the housing market. However, these changes need swift implementation to prevent further strain on the rental market. These reforms have the potential to create a fairer and more balanced housing market for everyone.
Copy

Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
With this bonanza, I am surprised they are not offering to send the local MP once a month to clean your windows as well. There is little not to like here. However, we live in the real world and historically political parties do not fulfil their pre-election promises and this could be one of them.
Copy

Editor
Ken James
Director at Contractor Mortgage Services
Reform have laid the foundation of what they believe will kickstart the housing market, although as many will notice this will be mostly for those who are British, so if your name's not on the list, you're not getting in. There are certainly some positive notes to their contract with actual common sense ideas, but these are just soundbites as Reform are not knocking on the door of Number 10.
Copy

Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
The policies announced in this contract are publicity and vote-winning, but more a pipe dream than a practicable political and fiscal plan. They will ultimately be dificult to fund and it will be difficult to support the country in key areas such as education and healthcare.
Copy

Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
Scrapping stamp duty below £750k sounds thrilling, but let’s be honest, most first-time buyers aren’t shopping in that price range—it's akin to offering a child a Ferrari when they're happy with a bicycle. Then there’s Reform's energy plan, which feels like getting excited about a vintage heating system when what we really need is decent insulation. Unlocking oil and gas reserves may sound great for oil barons, but for the rest of us, it’s more fiscal fantasy than practical policy. In essence, Reform UK's manifesto is a heady mix of ambitious ideas that might require more renovation than the average buy-to-let in Croydon. Reading Reform UK’s 2024 manifesto is like being promised a dream house and getting a fixer-upper. Their bold pledge to "freeze non-essential immigration" to solve the housing crisis is like cutting off your nose to spite your face. Less immigration means fewer tenants, leaving landlords with empty properties and maintenance costs that still need paying.
Copy

Amit Patel
Adviser at Trinity Finance
Promise the world and not deliver. When a party has no chance whatsoever to get elected into office, they can offer everything under the sun. A vote for Reform is a vote for failure and bigotry.