Badenoch outlines plan to remove tax on primary residences in England and Northern Ireland
The Conservative Party has announced its intention to eliminate stamp duty on the purchase of main residences in England and Northern Ireland should it secure victory at the next general election.
The proposal, presented by party leader Kemi Badenoch during a keynote address, would see the removal of the tax currently levied on property transactions above £125,000 for owner-occupiers. The party estimates the measure would reduce Treasury revenues by £9 billion annually. Stamp duty would continue to apply to additional properties, corporate purchases, and acquisitions by non-UK residents.
Badenoch argued that the policy is financially viable due to a separate commitment to cut public spending by nearly £50 billion by 2029. While some economists have questioned the clarity and feasibility of these projected savings, Badenoch maintained that the reductions would enable both tax relief and deficit reduction in the next parliament.
“Home ownership should be a dream that’s open to everyone,” Badenoch said. “Abolishing stamp duty on your home is a key to unlock a fairer and more aspirational society.
“Scrapping stamp duty will benefit people of all ages, because conservatism must speak to all generations: the young professional buying their first flat, the couple looking for somewhere to bring up their first baby, the growing family hunting for their forever home.”
“The next Conservative government will abolish stamp duty on your home,” Kemi Badenoch tells the Conservative Party conference
— BBC Politics (@BBCPolitics) October 8, 2025
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The Labour chancellor, Rachel Reeves, is reported to be considering alternative property tax models, though significant changes are not expected in the upcoming budget.
Badenoch positioned the abolition of stamp duty as a means to stimulate both the housing market and the wider economy.
Meanwhile, industry figures have responded to the proposal with a mix of support and caution.
“We welcome any proposals that bring higher levels of consumer confidence and affordability, helps streamline the buying and selling process, opens 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,” said Nathan Emerson, chief executive of industry body Propertymark.
“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 on transactions on the lead up to April, followed by an immediate lull in the months that followed.”
Guy Meacock, director at property buying consultancy Prime Purchase, remarked that while the plan sounded appealing, he doubted it could actually be achieved, even if Badenoch were to become the next prime minister.
“Removing stamp duty would be transformative but one wonders how on earth the government would finance such a sweeping change,” he said. “How would they budget for it, particularly as the economy is in such a sticky spot? They would need to recoup the money some other way.
“It’s a shame as this is the first piece of good news the property industry has had in a long while. Finally, someone is listening, has the common sense to realise that stamp duty is having such a detrimental impact on people’s mobility and is a block in every direction for the housing market. It is also making London and the UK far less investable.”
For Meacock, a rebasing of council tax, using up-to-date property values, would be “far more equitable and go some way to helping end the inherent injustice in the system.”
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