"Introducing an annual property tax risks undermining the natural fluidity of the housing market"
- Gerard Boon - Boon Brokers
New research from Boon Brokers shows widespread concern among UK homeowners about proposed changes to Stamp Duty Land Tax (SDLT). Most respondents view both a 0.5% annual property tax and seller-paid SDLT as unfair and financially challenging.
The survey, conducted by TLF Research, included over 1,000 homeowners across the North, East, West, and South of England, covering all age groups. Participants were asked about two potential reforms:
Seller-paid SDLT: Responsibility would shift from buyers to sellers. Properties valued over £500,000 would require sellers to pay SDLT based on the sale price.
Annual property tax: SDLT would be replaced with a 0.5% annual tax on homes over £500,000, calculated on the current property value.
The results show strong scepticism from homeowners, particularly among retirees and older working households who have already paid off mortgages.
Key findings include:
96% believe the proposed annual property tax would rise over time
75% think retired and working homeowners would be most affected
71% of respondents aged 65+ say retired homeowners would suffer most
66% of those aged 65+ anticipate financial strain
57% are very concerned about future tax increases
51% would be less likely to buy property under an annual tax
42% consider the proposed SDLT changes unfair
21% say they could not afford the annual property tax
The research indicates a widespread perception that both reforms could impose additional financial burdens. Many respondents, particularly recent buyers, expressed concerns about “double taxation,” as they have already paid SDLT when purchasing their properties.
Financial strain is a central concern, with 44% of all respondents saying an annual property tax would create pressure, and 20% stating they could not afford it. Retirees are seen as particularly vulnerable, with 37% listing them as the group likely to suffer most. Among respondents aged 65 and over, 71% believe retirees would be hardest hit, and 66% predict financial strain from an annual tax.
Beyond individual finances, homeowners expressed concerns about market behaviour. Survey results suggest that introducing either reform could reduce housing mobility:
35% would be less likely to sell if sellers paid SDLT
51% would be less likely to buy higher-value properties if an annual property tax were introduced
Only 24% said they would proceed as planned regardless of reforms
Older homeowners expressed particular concern over future tax increases. Among those aged 65+, 77% said they were very concerned about potential rises beyond the initial 0.5% levy. Overall, 96% of respondents across all age groups expressed worry that the annual property tax could increase over time.
Gerard Boon, managing director at Boon Brokers, said, “Introducing an annual property tax risks undermining the natural fluidity of the housing market. Rather than encouraging people to move for work, family, or space, it could trap households in properties that no longer meet their needs, which seems counterintuitive to the broader goals of a healthy housing market.”
