Nigel Farage has pledged that his Reform UK party would reverse the Section 24 landlord tax changes within 100 days.
Section 24 removes a landlord’s right to deduct the majority of their finance costs, including mortgage interest and arrangement fees, from their rental income before calculating their tax liability. This means landlords have to pay tax on the gross income they earn from a rental property.
In its ‘Contract With You’, Reform says it will ‘scrap the tax changes for landlords’.
In the same timeframe he would abolish the Renters Reform Bill and begin a review of the planning system.
The Reform ‘contract with the people’ – the Farage equivalent of a manifesto – is only 25 pages in its entirety and gives only a small amount of space to six general pledges on housing.
Introducing the contract to journalists, Farage said Reform UK would not form the government after the July General Election but that the contract would be the first step on the road to the next contest which could be in 2029.
“Our ambition is to establish a bridgehead in parliament, and to become a real opposition to a Labour government” he added. He said the Tories will not be able to provide opposition because “they spend most of their days arguing among themselves, and they’re split down the middle when it comes to policy”.
The party claims its ambitious tax cutting programme could be achieved by, amongst other things, £50 billion saved by avoiding unspecified “wasteful government spending” and halting the payment of bank interest on Quantitative Easing reserves saving some £35 billion.
Saying that over the past two years the UK population has risen 1.3m while only 425,000 new homes have been built at the same time, the contract states: “The Office of National Statistics forecast the population to grow by nearly 7 million between 2021 and 2036, putting huge pressure on housing. Mass immigration is the main factor in this. Other factors that have damaged housing supply are overly bureaucratic planning regulations that delay decisions and add huge cost.”
So the critical housing reforms within 100 days are, in their entirety:
Review the Planning System – “Fast track planning and tax incentives for development of brownfield sites, including unused offices and vacant high street properties. Review system of Section 106 Developer Contributions for infrastructure such as schools and surgeries to accelerate house building.”
Reform Social Housing Law – “Prioritise local people and those who have paid into the system. In parts of the UK almost half of all social housing is occupied by someone born overseas. Foreign nationals must go to the back of the queue. Not the front.”
Scrap the 2019 Tax Changes for Landlords – “The tax system should encourage smaller landlords into the rental markets. Not penalise them.”
Abolish the Renters’ (Reform) Bill – “Existing legislation was adequate to address bad practices. Instead, we will boost the monitoring, appeals and enforcement process.”
And for the period beyond 100 days, Reform pledges:
Incentivise Use of New Construction Technology – “Such as modular construction, and smart infrastructure.” And
More Homegrown Qualified Traders – “New apprenticeships and vocational courses will increase the supply of skilled, well-paid workers to replace cheap overseas labour.”
Elsewhere in the Reform Contract, under other non-housing headings, the party pledges:
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.”
Abolish Inheritance Tax (IHT) for all Estates Under £2m – “That means some 98% of all estates. The rate above £2m will be 20% tax, with the option to donate to charity instead.”
