UK: Tories Hoping to Woo Young Voters with First-time Home Buyers Incentive
The UK Conservative Party is reportedly exploring strategies to attract younger voters, particularly in the area of housing affordability.
UK Housing Secretary Michael Gove hinted at potential new initiatives to assist first-time homebuyers. Among the ideas being considered is the introduction of longer fixed-term mortgages, similar to the 30-year fixed rates common in the United States. These would potentially require smaller deposits by offering government protection against default.
Another possibility is reviving the help-to-buy scheme, which previously provided a government loan for new-build properties with just a 5% deposit. This scheme was discontinued last year. Gove emphasized the importance of addressing the challenges faced by individuals with sufficient income who struggle with the size of required deposits.
These plans, which could be announced in the March budget or included in the Conservative manifesto, are part of the party’s effort to regain support. The next election, expected in 2024, finds the Conservatives lagging behind Labour in the polls. Housing, a contentious issue within the party, is expected to be a key focus in the upcoming election. The 2019 manifesto’s promise of building 300,000 homes annually in England has not been met, and Gove recently scaled back this target.
In addition to housing initiatives, there are reports that the government might consider reducing inheritance tax as another appeal to voters. Such tax cuts, however, could present a stark contrast to Labour’s policies.
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