The leader of the Conservative Party, Kemi Badenoch, wishes to abolish stamp duty on home purchases. The Tories argue that stamp duty is a large one-off cost that discourages people from moving home, but not all property experts agree.
A former government adviser, Tim Leunig, has stated that abolishing stamp duty would increase house prices, benefiting sellers rather than buyers.
According to the Office for Budget Responsibility, stamp duty on residential properties raised £10.1 billion in the 2024-25 tax year and is expected to rise to a total of £19.3 billion by the year 2029-30. About half of this tax is paid on a main residence, with the remainder collected on additional properties.
Some economists support the idea of abolishing stamp duty. Thomas Pugh, chief economist at the audit firm RSM UK, said:
“From an economist’s perspective, stamp duty is certainly among the most damaging mainstream taxes and overdue for reform.”
Arun Advani, an economics professor at Warwick University, argues that abolishing stamp duty would increase job mobility, which benefits the economy.
Chancellor Rachel Reeves has not stated whether she intends to abolish stamp duty. If she does, to compensate for lost revenue, stamp duty could be replaced with alternative property charges, such as an annual property tax or a “mansion tax” on homes worth over £1.5 million.
If stamp duty has not deterred you from moving home, talk to Merseyside Movers & Storers, the leading Merseyside removal company, about packing and transporting your belongings to your new residence.
