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The time is right to scrap stamp duty for those who are buying homes to live in.
It’s time to scrap stamp duty!
In our 2013 Stamping on Aspiration report, (yes we know that’s over a decade ago…stay with us) we reported on the astonishing impact the effect stamp duty was having on the market and called for a series of reforms.
12 years later it’s still a huge hurdle. Our 2025 Survey of Homeowners found that one in five (19%) considered moving in the past two years but decided not to go ahead – citing stamp duty as one of the main reasons.
Despite successive government’s tweaking the stamp duty system by changing thresholds or introducing exemptions with the aim of making it fairer, reform has been piecemeal and often just created confusion which destabilises the housing market. As a result, Stamp Duty Land Tax continues to be a major obstacle to the housing market functioning properly. It’s a tax on mobility.
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Kemi Badenoch called the stamp duty a “bad tax” and promised to abolish it in her speech to the Conservative Party Conference on 8 October 2025.
We support this move and think it will be a real vote winner.
Stamp duty continues to be a tax that puts off families from moving up the property ladder, fleeces homeowners needing to make a sideways move and making it more expensive for older generations to downsize. It’s a tax that is applied every time a property is bought and sold. As a result people are choosing not to move. This inactivity limits the number of properties to choose from when buying, in an already squeezed housing market. And the knock on effect of all these lost home moves percolates through the whole economy – with everyone from property services like removals firms, to furniture sales, to tradespeople missing out.
We continue to support the 3% surcharge on buy-to-let and second homes, and the 2% surcharge for non UK residents. Although we think this should be a flat rate on the whole purchase price regardless of the price of the property. But we do believe those buying a home to live in should be treated differently to those looking to make money out of property or buying a second home as an investment.
That’s why we are calling for stamp duty to be abolished.
Confused as to how much stamp duty you’ll pay? Use our calculator
In the past, government has toiled with the idea of putting stamp duty on the seller and not the buyer – but this would be a major change that, if not implemented carefully and gradually, could clog up the market even more. And for those wishing to downsize, the stamp duty effect would be an even bigger barrier than before.
Most recently in 2025, the Labour government has mooted the idea of a Property Tax replacing stamp duty.
We still see stamp duty is stifling the market.
Our recent HomeOwners Alliance research in June 2025 found that one in five UK homeowners (19%) considered moving in the past two years but decided not to go ahead – citing stamp duty as one of the main reasons.
Amongst this group of UK homeowners who wanted to move but didn’t, their main reasons were:
Stamp duty is acting as a handbrake on the housing market. When a family faces a £10,000 stamp duty bill just to move to a £400,000 home – before they’ve even paid for surveys, legal fees, and removal costs – it’s no wonder a quarter of potential movers are staying put.
And we aren’t the only ones calling for change and argue a reduction in stamp duty will be a big boost for the economy. Numerous studies and reports support reform or abolition of stamp duty. Most recently, the Institute for Fiscal Studies has said the Chancellor should cut stamp duty if he wants to unleash “growth-friendly tax cuts” in his 2024 Spring Budget. While the Institute of Economic Affairs adds that a cut in stamp duty could cut inflation and expand housing supply. And there are many more voices out there calling for reform.
The government should abolish stamp duty for those buying a home to live in. Currently it’s a tax on transactions and so results in fewer of them, dampening the housing market and means that people don’t move even when they would like to. It is inefficient and deserves to go.
By abolishing stamp duty the market would be allowed to find its natural equilibrium. People would be able to move when they want to and the number of transactions would increase. There would be more chance for people to move up the market and therefore it would be easier for first-time buyers to get into the market.
It will help those older people wanting to downsize and free up capital, but haven’t as they have to pay stamp duty on a new purchase.
Obviously, this would result in a massive decrease in tax revenue for the government but perhaps not as much as anticipated as more people would be moving, generating demand for home improvements and property services, including removals, estate agents, conveyancing solicitors, etc. Lost revenues could be recouped with a corresponding increase in other property taxes that are more efficient – for example the rejigging of council tax could be a good place to start.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
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