Reform Section 24 so rental income is taxed on profit, not revenue. We think this would make new-build flats bought under Help to Buy or Shared Ownership more attractive to buyers and investors. We believe this could allow first-time buyers to move on which could ease pressure in the rental market.

Some first-time buyers using Help to Buy or Shared Ownership overpay for new-build flats. When they want to move, many may face negative equity and could be trapped in unsuitable homes, with savings spent repaying mortgages instead of funding a deposit. Renting may not be viable either, as S24 taxes gross rental income rather than profit. We think reforming these rules could help restore market mobility, boost rental supply, and make housing fairer and more affordable for tenants and homeowners.