The Conservative Party has announced a bold proposal to abolish stamp duty on primary residences, a move that would save the average homebuyer £4,592 based on the current average property price of £291,852 across England.
The Tory leader Kemi Badenoch has said at her keynote speech at the Conservative Party conference that she will abolish Stamp Duty if they are elected at the next general election.
Badenoch said, “We must free up our housing market, because a society where no one can afford to buy or move is a society where social mobility is dead.
“So I have looked at the stamp duty thresholds to see where we can change them. I have looked at the rates you have to pay to see if we can lower them.
“I have decided that we can’t, because that simply wouldn’t be enough. Conference the next Conservative government will abolish stamp duty.”
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, said, “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, 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, added, “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.”
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