Writing in the Telegraph, Purplebricks’ CEO, Sam Mitchell, has voiced strong concerns regarding Labour’s rumored tax hike plans, particularly around Capital Gains Tax (CGT), and their potential impact on the rental market. With Chancellor Rachel Reeves expected to address this in the upcoming October budget, Mitchell warns that aligning CGT rates with income tax could trigger a mass sell-off of rental properties by landlords.

Mitchell highlights that this would harm tenants by reducing housing supply and driving up rents, making it even harder for renters to save for a deposit to become first-time buyers. He suggested that instead of punitive measures, the government should explore more balanced approaches, such as offering tax relief for landlords who sell properties to tenants or first-time buyers, creating a “virtuous circle” that could benefit both groups.

Mitchell also criticized the government’s previous decisions, such as removing mortgage interest tax relief and imposing a 3% stamp duty surcharge on buy-to-let properties, arguing that these measures have contributed to a shrinking rental market and further hardships for tenants.

Labour’s housing policies, including building 1.5 million homes over five years and introducing the Renters’ Rights Bill, which would abolish Section 21 and extend Awaab’s Law into the private sector, have added to the industry’s concerns about regulatory and tax changes affecting landlords.