Should the UK Abolish Stamp Duty? What the Proposal Means for Property Buyers

2025-10-16

Industry News

There’s growing discussion in the UK property world: could stamp duty be on its way out? The idea of eliminating this tax on property purchases has been floated by political parties, economists, and housing experts alike. But what would it mean in practice — and who would stand to gain or lose?

This article breaks down the proposal, examines its pros and cons, and helps you understand how it could affect your next property move. You can also check what you’d currently pay using our Stamp Duty Calculator.

What Is Stamp Duty (or SDLT) Today?

In England and Northern Ireland, anyone buying a property above certain thresholds pays Stamp Duty Land Tax (SDLT). The tax is tiered, meaning different portions of your property price are taxed at different rates — the higher the value, the higher the rate.

There are also reliefs and surcharges. First-time buyers can benefit from reduced rates, while second homes and buy-to-let properties attract a surcharge. Over recent years, stamp duty has often been used as an economic lever — with temporary “holidays” introduced to boost the housing market.

Because stamp duty is a one-off payment made at completion, it’s often criticised for discouraging home moves and limiting flexibility in the property market.

What’s the Current Proposal?

This year, the debate about scrapping stamp duty resurfaced following a proposal from Conservative leader Kemi Badenoch, who pledged to abolish stamp duty on main residences if her party wins the next election.

The aim is to make home ownership more accessible and reduce the financial barriers that stop people moving. However, the Institute for Fiscal Studies (IFS) estimates that removing stamp duty could cost the Treasury around £4.5 billion per year.

Reports also suggest the government may explore replacing stamp duty with an alternative property tax, such as an annual levy on higher-value homes. Nothing is confirmed yet, but discussions are ongoing and could form part of the next Autumn Budget.

Why Do Supporters Want to Remove Stamp Duty?

Supporters of the plan highlight several key benefits:

• Encouraging market mobility – Lower costs could motivate more people to move, easing blockages in the housing market.
• Making buying more affordable – Reducing upfront costs helps first-time buyers and families who need more space.
• Boosting economic activity – Money saved on stamp duty might be spent on home improvements or local services.
• Modernising property taxes – Many experts argue the current system is outdated and needs reform to reflect modern property ownership.

What Are the Main Criticisms and Risks?

Opponents, however, warn of several potential downsides:

• Rising house prices – Easier access to the market could drive demand and push prices higher.
• Lost government revenue – Stamp duty raises billions each year, so removing it could create a major shortfall.
• Unequal benefits – Wealthier buyers of high-value homes would gain the most in absolute terms.
• Replacement taxes – Some proposals suggest a new annual property tax could replace stamp duty, shifting rather than removing the burden.
• Fairness issues – Those who recently paid stamp duty could feel disadvantaged if it’s suddenly scrapped.

The key question is how the government balances affordability for buyers with fiscal responsibility.

What Could This Mean for You?

If stamp duty were abolished, buying a property would immediately become more affordable for most homebuyers, as one of the biggest upfront costs disappears.

However, the wider impact would depend on whether prices rise and what, if anything, replaces the tax. For investors and owners of higher-value properties, outcomes could vary significantly depending on how any new system is structured.

For now, stamp duty remains in place — so it’s important to understand how much you’d currently pay before making your next move.

Try Our Stamp Duty Calculator

Want to know how much stamp duty you’d pay today — or how much you could save if it were abolished? Use our Stamp Duty Calculator to get an instant estimate based on your property price, location, and buyer status.

Click To Use Our Stamp Duty Calculator

Our calculator helps you:

• Estimate your current stamp duty cost
• Compare potential savings under new proposals
• Plan your property purchase with confidence

Thinking About Buying a Property?

If you’re considering purchasing a home in London or want advice on how possible stamp duty changes could affect your next move, Crown Home Buying & Letting (CHBL) is here to help.

Our expert team specialises in helping buyers and investors navigate the London property market — from luxury apartments to off-plan developments and resale homes.

Get in touch today for personalised property advice:

Lettings Enquiries:

📧 info@chbl.uk

📞 +44 (0) 207 903 6881

WeChat ID: CHBLEMILY

Sales Enquiries:

📧 joanne@chbl.uk

📞 +44 (0) 207 903 6896

WeChat ID: JJ-CHBL