A replacement for stamp duty could be on the way, according to new reports
Chancellor Rachel Reeves is considering a huge overhaul of stamp duty that would see a new national property tax on homes worth more than £500,000, reports have suggested.
The Guardian said on Monday that Treasury officials have been asked by senior ministers to study a “proportional” property tax and how it might be implemented, with a replacement of stamp duty on owner-occupied homes among the measures reportedly under consideration.
Also proposed, according to sources who spoke to the Guardian, is a local property tax to replace council tax, although it’s believed that would be a longer-term measure that would likely require Labour to return to power in the next general election.
The rumoured move arrives with Reeves under internal pressure to introduce further wealth-based taxes ahead of this autumn’s budget, which is likely to include an array of tax increases.
The existing stamp duty has faced a barrage of recent criticism as a serious impediment to housing affordability across the UK. It’s currently paid in bands linked to property prices, and changes introduced in April meant more first-time buyers were required to pay it while other people moving also faced higher expenses.
In June, a new analysis of HM Revenue & Customs data showed buyers had paid 25% more in stamp duties between January and May 2025 than the same period last year.
About 60% of current property sales are impacted by stamp duty, with analysis suggesting a new national property tax would only apply to about 20% of property sales. A report by thinktank Onward is reportedly among the research being considered by Treasury officials as they weigh new property tax changes.
That document recommended combined national and local “proportional” property taxes based on a home’s value.
A Bank of England report said mortgage lending dipped sharply across the UK in April – a trend Propertymark chief executive Nathan Emerson said stemmed partly from the stamp duty changes.
Reeves is likely to unveil an autumn budget in late October or early November.
