- Think-tank Policy Exchange also called for the leasehold system to be abolished
Radical reforms to make it easier for young people to buy property and company shares must be approved to restore Britain’s faith in capitalism, ministers have been warned.
A new report by Policy Exchange said more aspiring homeowners should be able to commission and build their own houses amid the cost-of-living crisis.
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-led 25-year fixed rate mortgage product to boost home ownership and implementing tax super deduction for employee ownership schemes to give more workers a stake in their companies.
The authors cited polling which suggests that only 13 per cent of under-50s think capitalism is working effectively, and some 67 per cent of Millennials and Generation Zs want to live in a socialist economy.
A new report by Policy Exchange said more aspiring homeowners should be able to commission and build their own houses amid the cost-of-living crisis (Stock Image)
Senior Tories have praised the proposals as crucial to winning over disillusioned voters ahead of the next general election – especially young people struggling to get on the housing ladder.
Business Secretary Kemi Badenoch said: ‘Ownership not only brings material benefits, but imbues a sense of responsibility, of care and of stewardship in those who possess it. It is why, as Business Secretary, I have been proud to champion those who invest in our industries – and to create the conditions for small business owners to thrive.
‘The success of the Conservative Party depends upon us broadening the base of those who feel they have a tangible stake in society.
‘There is a clear moral case that those who work hard have the opportunity to enjoy the fruits of their labours.
‘This includes the right to decide how to make use of and enjoy your own property, without undue interference by the state.
‘It is not by redistribution and nationalisation, but by expanding the circle of ownership that we will make our society wealthier, fairer and more inclusive.’
Business Secretary Kemi Badenoch said: ‘Ownership not only brings material benefits, but imbues a sense of responsibility, of care and of stewardship in those who possess it’
Science minister Andrew Griffith said that the conservative party needs a ‘specific pitch to young people about why it should be supportive of our capitalist economic model’
Science minister Andrew Griffith added: ‘People feeling that they have a stake in society and can aspire to own property is fundamental to the long-term success of conservative philosophy.
‘The Conservative Party needs big ideas about what it should do in Government. Perhaps more importantly, it needs a specific pitch to young people about why it should be supportive of our capitalist economic model.
‘Increasingly, younger generations are being denied opportunities in society enjoyed by previous ones, and this is eroding popular support for our way life.’
The authors suggest that ‘more and more, young people see capitalism as the cause of society’s principal problems’ rather than a solution.
‘If capitalism is to endure, we must create more capitalists – more property owners with a stake in the fortunes of our country’ they added.
A Department for Levelling Up, Housing and Communities spokesman said: ‘Supporting young people to own their own homes is a Government priority, and since 2010 we have helped over 860,000 households to purchase a home through Government backed schemes.
‘We have also laid out an ambitious long-term plan for housing to ensure we deliver the homes that communities across the country want and need.’