Reports Suggest Tories to Offer Assistance for First-Time Buyers in Bid to Attract Voters

The Conservative Party plans to introduce incentives for first-time homebuyers and potentially eliminate inheritance tax as strategies to attract voters ahead of next year's expected election. Amidst poor polling results, the party is considering measures such as longer fixed-term mortgages to make home buying more accessible by reducing the required deposit amount. Housing Secretary Michael Gove confirmed that a new policy would be unveiled before the election, hinting at addressing mortgage market issues.

The government is also contemplating the revival of a program similar to the defunct Help to Buy scheme, which facilitated new home purchases with a minimal deposit. This announcement could come with the March budget or be included in the Conservative manifesto.

In a separate report, there are talks of abolishing inheritance tax, a move unlikely to be emulated by the Labour Party, potentially giving the Conservatives a tax policy edge. Though the move could cost £8 billion annually and affects just 4% of households, some Conservative MPs have praised the potential cut.

This upcoming budget, considered pivotal before the elections, is expected to focus on policies to sway voters despite Chancellor Jeremy Hunt previously avoiding popular tax cuts to concentrate on economic growth. With increased pressure for tax reduction after income tax threshold freezes pushed many into higher tax brackets, the upcoming budget may present significant fiscal changes.