Reform tax rules so rental income is taxed on profit, not revenue

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.