The Conservatives say they will scrap Capital Gains Tax for landlords who sell to sitting tenants, if they win the General Election.

The scheme would last for two years and is designed to convince landlords to free up more housing stock, and also benefit long-term renters by increasing their chances of getting on to the housing ladder.

The Conservative manifesto, released today, does not estimate how many people would take advantage of the change if implemented. It is set to cost only £20m a year, suggesting a limited uptake.

Other housing policies include the return of Help To Buy allowing first time buyers to get a mortgage with a deposit of just five per cent of the property price.

The Government would effectively provide a loan worth 20 per cent of the property; developers would also contribute some money, in a revision to the old scheme.

The Tories are also promising to permanently abolish stamp duty for first-time buyers on properties up to £425,000; at the moment this relief is due to end in March 2025.

At the manifesto launch Rishi Sunak said: “We Conservatives have had to take difficult decisions because of Covid. But we are now cutting taxes for earners, parents and pensioners. We are the party of Margaret Thatcher and Nigel Lawson, a party, unlike Labour, that believes in sound money.

“In this party, we believe that it is morally right that those who can work do work, and that hard work is rewarded with people being able to keep more of their own money. We will ensure that we have lower welfare so we can lower taxes.”

Here’s a summary of all the Tory housing pledges made today:

– 1.6m new homes in England in the next Parliament;

– Fast-track planning for new homes in 20 key cities;

– Strong design codes to improve housing appearance; 

– Greater density of housing in London and new regeneration areas in York, Leeds and Liverpool;

– More help for SME builders through reduced S106 obligations;

– Infrastructure Levy to be used on-site at new housing schemes; 

– Cast-iron commitment to protect Green Belt;

– No stamp duty for first time buyers paying up to £450,000;

– A resuscitated Help To Buy scheme and enhanced discounts for Right To Buy; 

– Mortgage Guarantee Scheme to be continued; 

– Tougher on anti-social behaviour by social housing tenants; 

– Pledge not to raise council tax, CGT on principal homes, and stamp duty;

– Temporary Capital Gains Tax break for landlords selling to sitting tenants;

– Leasehold ground rents capped at £250 pa, reducing to peppercorn;

– A Renters Reform Bill scrapping Section 21 and strengthening Section 8;

– Review quality of temporary accommodation for homeless;

– Further help for leaseholders with historic building safety costs;

– New powers for councils to control holiday lets; 

– More planning assistance for self-builders;

– Greater police powers to remove illegal traveller sites.