A cross-party group of MPs has called for a major review of stamp duty as part of a wider package of measures designed to improve home ownership affordability and help more first-time buyers onto the property ladder.
In a new report published by the Housing, Communities and Local Government (HCLG) Committee, MPs warned that home ownership has become increasingly out of reach for many households, particularly those unable to rely on financial support from family members.
The committee said the Government should launch a consultation before the end of 2026 to examine alternatives to Stamp Duty Land Tax (SDLT), arguing that the current system creates friction within the housing market and can act as a barrier to mobility and home ownership.
While acknowledging that stamp duty generates significant revenue for the Treasury, the committee said reform should be considered alongside a wider overhaul of council tax to ensure any replacement remains fair and fiscally sustainable.
PIPE DREAM
Florence Eshalomi MP (main picture, inset), Chair of the Housing, Communities and Local Government Committee, said: “Rates of home ownership in England have declined over the last 20 years. For many people, and especially for those unable to draw upon the bank of Mum and Dad, the prospect of owning a home is little more than a pipe dream.
“No silver bullet exists but the government can apply a range of supply and demand-side measures to help people get on the property ladder.”
The report concludes that increasing housing supply remains critical but warns that delivering the Government’s target of 1.5 million new homes during this Parliament is unlikely, on its own, to solve affordability challenges.
EMPTY HOMES
Alongside stamp duty reform, MPs have called for councils to be given greater powers to bring empty and under-occupied homes back into use. The committee noted that hundreds of thousands of residential properties across England remain vacant, many for extended periods.
The report also backs the replacement of the Lifetime ISA with a new savings product focused specifically on supporting home ownership.
However, MPs warned that any replacement should avoid the static property price caps that have rendered Lifetime ISAs ineffective in some parts of the country.
The committee also welcomed Government plans to review mortgage lending rules, improve shared ownership and continue the transition away from leasehold towards commonhold ownership models.
STAMP DUTY ALTERNATIVES
Eshalomi added: “Reform of stamp duty is necessary but, especially given the public finance implications, this cannot be done in isolation or without a credible alternative in place.
“We urge the Ministry of Housing, Communities and Local Government and HM Treasury to consult on alternatives to stamp duty that can deliver long-term benefit and not a short-term fix which only distorts the housing market and exacerbates the affordability problem.”
The report now places additional pressure on ministers to outline how they intend to tackle affordability as part of wider housing reforms over the remainder of this Parliament.
SUPPORTING HOMEOWNERS
Nick Sanderson, Founder of Audley Group, says: “The Housing Committee is right to highlight the challenges that first-time buyers face, but solutions that focus solely on this part of the market are a well-worn path that have, to date, not delivered the change needed.
“As the UK population continues to age, much more needs to be done to support older homeowners who want to downsize but face limited options.
“Expanding the range of later-living housing and putting incentives in place, such as stamp duty exemptions, would not only help people find homes better suited to their needs, but also free up larger family homes and create movement across the housing market.
“Doing this will help to unlock the entire housing chain, increasing opportunities for first-time buyers and making it easier for people at every stage of life to move home.
“Ultimately, if we want to improve affordability and access for future generations, we need housing policies that support people at every stage of life – and the Government needs to acknowledge this sooner rather than later.”
EASIER AND CHEAPER
Jinesh Vohra, CEO of Sprive, adds: “Anything that makes it easier and cheaper to move home is welcome, and stamp duty has long been a barrier – it’s a tax on moving that freezes people in place, discourages downsizing and adds thousands to an already stretched buying process. Unblocking that is good for the whole market.
“However, the biggest tax most homeowners pay isn’t stamp duty, it’s interest. A typical borrower pays the bank tens of thousands, often hundreds of thousands over the life of their mortgage.
“But unlike stamp duty, that’s a cost people can actually start chipping away at today, by overpaying even in small amounts so they own more of their home, sooner.”
