A Conservative government would abolish stamp duty, party leader Kemi Badenoch has pledged.
Speaking at the Conservative Party conference this week in Manchester, Badenoch told delegates she would abolish stamp duty entirely on primary residences.
She referred to stamp duty as the “big barrier” that gets in the way of the housing market and home ownership.
Badenoch made it clear this would be an outright abolishment after reviewing thresholds and rates to consider if these could be tweaked.
“Abolishing stamp duty on your home is a key to unlocking a fairer and more aspirational society,” she said in her speech.
“We cannot unpick every tax, the debt, the deficit and the damage this Labour government is creating means we cannot do everything all at once.
“Scrapping stamp duty will benefit people of all ages because Conservatism must speak to all generations.”
That move has been welcomed by some in the industry but there is scepticism around how this would work and how a Conservative government would replace the revenue this produces.
In 2024/25, HMRC generated £18.3bn in receipts from stamp duty taxes. On a single property this is currently charged with rates between 2% and 12%, with the property threshold starting from £125,000. Stamp duty on second homes can often carry a surcharge of 5%.
Jeremy Leaf, north London estate agent and former RICS residential chair welcomed the news and claimed stamp duty reduces liquidity and distorts house prices. However, he added: “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 the least impact on activity.”
From a stock market perspective, AJ Bell head of markets Dan Coatsworth flagged that housebuilder share prices had shrugged off the announcement.
“Anything to cut the cost of buying a property could strike a chord with swathes of the public,” said Dan.
“That might secure more votes for the Conservatives in their quest to get back into power, but it would also remove an important tax income stream at a time when public finances are looking fragile.
“A standalone removal of stamp duty would be simple to understand and free up a housing market that has seen prices begin to stall lately — but there will be questions on how the pledge would be funded.”
