Reforms are needed to make it easier for young people to buy a home to restore faith in capitalism, ministers are warned
- Think tank Policy Exchange also called for the abolition of the leasehold system
Radical reforms must be adopted to make it easier for young people to buy property and company shares to restore Britain's faith in capitalism, ministers have been warned.
A new report from Policy Exchange says more aspiring homeowners should be able to build and build their own homes amid the cost of living.
The influential think tank has also called for the leasehold system to be abolished and for more people to be taught how to invest.
Other reforms proposed by Policy Exchange include creating a new market-driven 25-year fixed-rate mortgage product to boost home ownership and implementing super tax deductions for employee ownership schemes to give more workers a stake in their businesses.
The authors cited polls showing that only 13 percent of under-50s think capitalism works effectively, and that about 67 percent of millennials and Generation Z want to live in a socialist economy.
A new report from Policy Exchange says more aspiring homeowners should be able to build and build their own homes amid the cost of living.
Senior Tories have hailed the proposals as crucial to winning over disillusioned voters ahead of the next general election – especially young people struggling to get into the housing market.
Business Secretary Kemi Badenoch said: “Property not only brings material benefits, but also instills a sense of responsibility, care and stewardship in those who own it. That's why, as Minister of Economy, I'm proud to defend those who invest in our industries – and to create the conditions in which small business owners can thrive.
'The success of the Conservative Party depends on broadening its base of those who feel they have a tangible stake in society.
'There is a clear moral argument that those who work hard have the opportunity to enjoy the fruits of their labor.
'This includes the right to decide how to use and enjoy your own property, without undue interference from the state.
“It is not through redistribution and nationalization, but through widening the circle of ownership that we will make our society richer, fairer and more inclusive.”
Business Secretary Kemi Badenoch said: 'Property not only brings material benefits, but also instills a sense of responsibility, care and stewardship in those who own it'
Science Minister Andrew Griffith said the Conservative Party needs a 'specific pitch to young people about why it should support our capitalist economic model'
Science Minister Andrew Griffith added: 'People feeling they have a stake in society and can aspire to ownership is fundamental to the long-term success of Conservative philosophy.
'The Conservative Party needs big ideas about what it should be doing in government. Perhaps more importantly, it needs a specific pitch to young people about why it should support our capitalist economic model.
“Increasingly, younger generations are being denied opportunities in society that previous generations enjoyed, and this is eroding popular support for our way of life.”
The authors suggest that 'young people increasingly see capitalism as the cause of society's main problems' rather than as a solution.
“If capitalism is to survive, we must create more capitalists – more property owners with a stake in our country's fortunes,” they added.
A spokesperson for the Department for Leveling Up, Housing and Communities said: 'Supporting young people to own their own home is a government priority, and since 2010 we have helped more than 860,000 households buy a home through by government supported programs.
“We have also set out an ambitious long-term housing plan to ensure we deliver the homes that communities across the country want and need.”