"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"
- Marc von Grundherr - Benham and Reeves
The Conservative Party has announced plans to abolish stamp duty on primary residences across the UK if it wins the next general election.
Party leader Kemi Badenoch unveiled the proposal during her speech at the 2025 Conservative Party conference in Manchester, describing stamp duty as a “bad tax, an un-Conservative tax” that restricts home ownership and slows housing market activity.
According to the Conservatives, removing the tax would cost the Treasury around £9 billion a year. Badenoch said the measure would be funded through planned government spending reductions of approximately £50 billion by 2029.
She also outlined a new fiscal framework under which half of any public spending savings would go toward deficit reduction, with the remainder allocated to tax cuts or investment.
The pledge would apply only to primary residences, excluding second homes, company-owned properties and purchases by non-UK residents.
Economists have raised concerns about the feasibility of the proposed savings and the potential impact on public services. The party maintains that the reform would stimulate economic growth and expand access to home ownership.
The announcement forms part of a broader policy platform including welfare reform, reductions in green levies and a renewed focus on public sector efficiency.
Industry reactions
“Stamp duty is the one lever politicians can pull that is guaranteed to have an immediate impact on the housing market," said Tom Bill, head of UK residential research at Knight Frank. "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. 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.”
Richard Donnell, Executive Director at Zoopla, said, "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."
Jennie Hancock, founder and director of West Sussex buying agency Property Acquisitions, said, “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.”
"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," comments Paula Higgins, chief executive of HomeOwners Alliance. "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."
She added, "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."
Nathan Emerson, CEO of Propertymark, said, “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 transactions in the lead up to April, followed by an immediate lull in the months that followed.
He added, “Propertymark welcomes any proposals that bring higher levels of consumer confidence and affordability, help streamline the buying and selling process, open 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.”
Marc von Grundherr, Director of Benham and Reeves, said, “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.”
Verona Frankish, CEO of Yopa, commented, “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."
Damien Jefferies, Founder of Jefferies London, said, “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.”
Shepherd Ncube, Founder and CEO of Springbok Properties, commented, “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.”
Richard Sexton, commercial director of 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, but it also hampers Britain’s economic efficiency by disincentivising relocation for work. I welcome its proposed abolition.”
Stuart Cheetham, CEO of the mortgage lender MPowered, said, “As ‘rabbit out of the hat’ moments go, this was right up there. But as policies go, it’ll be an albatross if the Tories defy the odds and win the next election."
“Stamp Duty isn’t just the bane of housebuyers or the plaything of politicians. It generates billions for the Treasury every year. In 2023 to 2024, people buying homes paid £8.6bn of Stamp Duty straight into Government coffers - and the figure is likely to have been even higher in the latest tax year."
“Promising to forego billions in tax revenue is bold stuff, and one of the few privileges enjoyed by opposition parties. No party currently in office would dare give away so much revenue, given the weakness of the Government’s finances."
“Scrapping Stamp Duty entirely would be very popular, and it would deliver a huge caffeine jolt to the sluggish property market. But there’s also a risk that it would drive up prices so fast that any savings for first-time buyers would soon be cancelled out."
"In fact, the total abolition of Stamp Duty would deliver the biggest tax breaks to everyone but first-time buyers. People buying a second home or very expensive properties would save the most tax. First-time buyers currently pay no Stamp Duty on properties costing less than £300,000 - and the changes would do nothing for them."
“Kemi Badenoch’s announcement will fly when it comes to headlines, but on every other count it’s unlikely to get off the ground.”
