Straughn unveils tax cuts, housing reforms to boost homeownership

Thousands of working people could soon find homeownership within easier reach as the government announced significant personal income tax cuts, expanded mortgage relief for lower-income earners, and streamlined family land policies aimed at removing barriers to affordable housing.

The measures, revealed by finance minister Ryan Straughn in Monday’s budget speech, will take effect from April 1, the start of the new fiscal year.

Announcing that personal income tax rates will be reduced as part of the government’s effort to ease the financial burden on the working class, he said: “This reduction in income tax is designed to provide Barbadians with more disposable income, allowing them to invest in their future while stimulating economic activity.”

While the minister noted that the fine details on the specific tax rate reductions are expected to be outlined in upcoming financial legislation, he assured that the move is expected to benefit middle- and low-income earners the most.

Straughn also acknowledged that many Barbadians, especially those earning below $2 000 per month, struggle to qualify for mortgages due to stringent lending requirements.

“The reality is that too many Barbadians, despite having steady employment, are unable to secure financing for homeownership. We are committed to making housing more affordable for those who need it most,” he said, noting that the government is working with banks, credit unions and insurance companies to create a more flexible underwriting process that will help low-income earners qualify for mortgage loans.

Straughn further announced that the Mortgage Indemnity Insurance Act will be expanded to cover all qualified lenders, which is expected to give financial institutions greater confidence in approving loans for first-time homebuyers.

“This expansion will remove one of the biggest barriers to homeownership—access to financing—by allowing banks and credit unions to lend with greater flexibility,” he said.

The government is also accelerating its affordable housing initiative, committing to the construction of 2 000 homes annually over the next five years.

“Housing remains one of the biggest concerns for Barbadians,” Straughn said. “We are working in collaboration with the private sector to ensure that more people can access affordable housing options.”

The initiative will be driven by strategic partnerships between government and private developers, aiming to increase the supply of modern, energy-efficient homes across the country.

The housing push will also see the implementation of a new family plots policy, making it easier for Barbadians to transfer and develop family-owned land. This initiative aims at simplifying existing processes so families can pass down and build on inherited land without excessive legal and financial barriers.

“Many Barbadians own land that has been in their families for generations, but outdated policies and restrictions have made it difficult to develop. We are fixing this so that families can build homes more easily,” Straughn said.

“This is about providing people with a fair chance to own their own homes, build generational wealth, and strengthen our communities,” he said, stressing the purported impact of lowered taxes, improved mortgage access and new policy.

The tax reductions and new mortgage financing options will take effect from April 1, while the affordable housing and family plot initiatives will be rolled out in the coming months as legislative frameworks are finalised.

(SM)