@whatshallIdo1 the proposal is (and it's true, it hasn't yet become official policy) that tenants who have been in a property for three years (and of course LL won't be able to evict at the three year mark as Section 21 is being removed) will be able to apply to buy the house they live in at a 33 per cent discount to a maximum of 80,000 ish outside London and £110,000 inside London. The value of the house would be decided by government. The LL would then pay tax on any capital gain.
So for example - one of my houses. Bought 25 years ago for £60,000. Now worth say £400,000. I could be forced to sell. Supposing house prices remain stable (they won't). It would probably be 'valued at say £350,000 (the shadow chancellor already said that the valuation wouldn't necessarily be at market rate). On which I would have to give a discount of 110,000. So I would get £240,000. I would then pay 40 percent capital gains on £180,000. So in total I would end up with around £170,000 on a house worth £400,000. And that's assuming house prices remain stable. In reality there would be such a rush to sell (the most obvious thing to do for any LLs with less equity) that house prices would plummet. I'd be lucky to end up with £100,000.
Not only would this be horribly unfair, but it would remove the incomes and pensions from literally millions of people who would eventually become a burden on the state when they would otherwise have been large tax payers. I know LLs are disliked on MN and I'm sure many people would love to see this happen, but not many people would like the affects of a huge house price crash. And how people who need to rent would get on I've no idea.
The other effect it would have is to stop all investment and improvements by LLs in their current properties. Instead of putting around a third of my profits each year into improvements I would only do the absolute essentials if this policy were law. After all who in their right mind would spend money making a property nicer when it might be taken off them at any time? And who would want to make it more desirable to buy?