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SMF Requests Tax Incentives to Support Private Renters in Their Journey Toward Homeownership
Private renters are struggling to save for deposits amidst rising housing costs immediate action is needed
In a recent article in Smart News, the UK government is being urged by the Social Market Foundation (SMF) to think about enacting tax incentives for private renters to hasten their ability to save for homeownership. The SMF, which was founded by a Conservative peer and is run by a former executive of the Daily Telegraph, makes the case in its research that innovative tax laws might change the housing market and bring in money for the exchequer. The UK has the lowest rate of homeownership among the English-speaking nations analyzed, thus the report emphasizes how urgently it must address the difficult challenge of saving for a deposit, which is made worse by rising housing costs that take up more than 25% of Britons’ disposable income.
SMF Calls for Government Action: Tax Reforms Are Essential for Encouraging Private Renters to Pursue Homeownership
The SMF report makes several important recommendations, such as granting renters rebates for council tax to help them save for deposits, insuring high loan-to-value mortgages to encourage lenders to lend to borrowers with small deposits, and changing council tax to make it more progressive and representative of present property values. Proposals like taxing empty properties, raising surcharges on foreign buyers, and taxing the gains from property flipping have the potential to provide substantial revenue streams. The SMF supports the use of these resources to alleviate housing shortages and support government funds, pointing out that millions of homes are vacant and that hundreds of thousands are owned by non-residents. It emphasizes the need to make proactive efforts to support individuals who are marginalized in the housing market.
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