Kemi Badenoch has pledged to abolish stamp duty on home sales, describing it as an “unconservative tax” that denies millions the chance to own a home.
In a surprise announcement during her closing speech at the Conservative Party conference in Manchester (main picture), the party leader said removing the levy would be “the key to unlocking a fairer society” and reviving social mobility.
“We must free up our housing market, because a society where no one can afford to buy or move is a society where social mobility is dead,” Badenoch told delegates. “It will benefit people of all generations.”
She said she had considered raising stamp duty thresholds but concluded that “tinkering at the edges” would not go far enough. “The next Conservative government will abolish stamp duty on your home,” she declared to applause.
CHAIN REACTION
Badenoch argued that every home purchase sets off a “chain reaction” of economic activity — from removals and renovation to DIY and furniture spending — and said removing the tax would stimulate wider growth.
However, she stopped short of outlining how the pledge would be funded. The party said the policy would comply with Badenoch’s new “golden rule”, which requires that half of the proceeds from any tax cuts go towards reducing the deficit.
Conservative officials claim to have identified £47 billion of potential public sector savings, including reductions in welfare spending, to help offset the cost of abolishing stamp duty.
ECONOMIC GROWTH
Richard Donnell, Executive Director at Zoopla, says: “Stamp duty hits four in five homeowners and two in five first-time buyers across the country, especially southern England where 60% of all stamp duty is paid.
“We welcome any proposals that remove the financial barriers to moving home.
“More home moves would support economic growth and the ambition to build more homes.”
MORTGAGE SPIKE
And Tom Bill, Head of UK Residential Research at Knight Frank, adds: “Stamp duty is the one lever politicians can pull that is guaranteed to have an immediate impact on the housing market.
“If bond markets feel confident that it has been fully costed and mortgage costs don’t spike, buyers and sellers would warmly welcome the move.
“It would inevitably have positive repercussions for the wider economy and increase social mobility.”
But he added: “The only downside is that if the Tories are leading in the polls ahead of the next general election, the housing market could grind to a halt.”
PROHIBITIVE TAX
Jennie Hancock, Founder and Director of West Sussex buying agency Property Acquisitions, says: “Stamp duty is such a prohibitive tax, and that was clear for everyone to see when the temporary stamp duty holiday was introduced during covid.
“In over 30 years of working in the housing market, I’ve never witnessed such an instant and dramatic turnaround in the market.
“It’s unlikely the Conservatives will have the opportunity to implement this policy any time soon, but my hope is that after three years of property market stagnation, Labour takes note and recognises the vast economic benefits scrapping stamp duty would bring.”
A NEGATIVE PRESSURE
Nathan Emerson, Chief Executive of Propertymark, says: “Across England and Northern Ireland, stamp duty has often proven to be a negative pressure for many consumers regarding housing transactions, often placing extra strain and uncertainty within the process.
“Earlier this year we witnessed the direct effect of stamp duty threshold changes, with a rush to complete on transactions on the lead up to April, followed by an immediate lull in the months that followed.
“Propertymark welcomes any proposals that bring higher levels of consumer confidence and affordability, helps streamline the buying and selling process, opens additional opportunities to purchase a property for those who aspire to buy, as well as enabling and supporting people to secure a long-term permanent home that fits their needs more easily.”
VOTE WINNER
Paula Higgins, Chief Executive of the HomeOwners Alliance, says: “We strongly support the Conservative Party Leader’s call to abolish stamp duty.
“We’ve long campaigned to scrap stamp duty for people buying a home to live in.
“Kemi Badenoch is right: it’s a tax that traps households, hampers mobility and suppresses market activity. Homeownership is the foundation of a fairer and more secure society – but stamp duty has denied that opportunity to too many for too long.
“Our research shows over 800,000 homeowners have shelved moving plans in the past two years, and stamp duty is a major barrier.
“By scrapping it, we don’t just help first-time buyers: we unlock supply, free up stock, stimulate related trades and get the housing market moving. This will be a real vote winner.”
OUTDATED AND REGRESSIVE
Richard Sexton, the commercial director of proptech HouzeCheck, said: “Stamp Duty land Tax (SDLT) is an outdated, regressive tax that burdens anyone aiming to buy a home.
“Existing homeowners and potential first-time buyers should cheer to hear of its proposed removal.
“SDLT inflates the already hefty costs of purchasing a property.
It unfairly punishes those who’ve saved to buy a home but now need to upsize or move for work, while also discouraging older homeowners from downsizing – even when their large homes are no longer needed.
“Tenants aren’t spared either – landlords offset the surcharge through higher rents.
Not only does it cost a great deal of money, it is also hampers Britain’s economic efficiency by discinsentising relocation for work. I welcome its proposed abolition.”
MOBILITY DETERRENT
Jeremy Leaf, north London estate agent and a former RICS Residential Chairman, says: “We welcome the Conservatives’ announcement that stamp duty is to be abolished.
“Stamp duty may have proven to be an excellent revenue raiser but is also a deterrent to mobility, upsizing/downsizing and economic growth. Stamp duty reduces liquidity and distorts pricing in the existing homes, as well as new-build, market.
“Genuine first-time buyers shouldn’t pay – they are the engine room of the housing market helping to unlock transactions further up chains.
“But be careful what you wish for. The revenue generated by this hugely unpopular tax will have to be replaced – but there must be a better way.
“We certainly need an urgent debate to determine what alternative is going to have least impact on activity.”
POLITICAL HOT AIR
Marc von Grundherr, Director of Benham and Reeves, says: “This is nothing but political hot air designed to win votes and there’s absolutely no chance the Conservatives would give up such a considerable tax haul, especially in these uncertain economic times.
“While the property industry may broadly support it and there’s no doubt it would help boost market sentiment, homebuyers will likely end up disappointed if they vote expecting this will ever actually happen.”
HEAD TURNING
Verona Frankish, Chief Executive of Yopa, says: “A bold claim that will undoubtedly turn heads amongst homebuyers.
“We’ve seen previously how stamp duty relief can help to stimulate the market, with activity climbing sharply during the pandemic reprieve, and again this year before thresholds reverted to previous levels.
“So a move to abolish stamp duty would certainly give the market a kick-start, though the real question is whether it will ever come to fruition.”
TRANSFORMATIVE IMPACT
Damien Jefferies, Founder of Jefferies London, says: “Stamp duty is a significant financial barrier for homebuyers across the board, and it has long been one of the key factors restricting mobility within the market.
“Removing it could drive activity at every level, from first-time buyers to high-net-worth purchasers, while reinvigorating sentiment across the wider economy.
“For prime London in particular, the impact could be transformative.
“International buyers have faced a series of fiscal deterrents in recent years, from higher SDLT rates to changes in capital gains tax, which have collectively dampened investment appetite.
“Scrapping stamp duty would reverse much of that sentiment, positioning London once again as a highly attractive, liquid, and globally competitive market.”
CONSIDERABLE BOOST
Shepherd Ncube, Founder and CEO of Springbok Properties, says: “Stamp duty is the second largest cost homebuyers must overcome when looking to climb the ladder and so, of course, any move to scrap it would bring a considerable boost.
“In essence, it would encourage more buyers to make their move to homes suitable for their respective stages of life, and this could help to alleviate the pressure on the supply of suitable housing stock across the wider market.
“Of course, we’re a long way from such a reality at the moment, but even today’s claims will excite many homebuyers given the potential savings that could come as a result later down the line.”
MARKET NEEDS MOVEMENT
Craig Fuller, Managing Director of Craig Fuller Property, says:“This would be a major move and a very positive one for the housing market.
“Abolishing Stamp Duty on main home purchases would remove one of the biggest barriers to moving, helping buyers act with confidence and encouraging more sellers to bring their homes to market.
“Every move creates a chain of activity, from first-time buyers to families trading up and downsizers releasing stock, and that momentum benefits everyone involved.
“While this remains a Conservative pledge rather than policy, the signal itself is encouraging.
“It shows a recognition that the market needs movement, not more barriers. If ever implemented, it could be genuinely transformative in getting confidence and activity flowing right through the property market again.”
