Research highlights concerns about fairness and financial impact of tax reforms
Homeowners in the UK have expressed significant apprehension regarding proposed changes to Stamp Duty Land Tax (SDLT), according to new research from whole-of-market brokerage Boon Brokers.
The majority of respondents consider both an annual property tax and a shift of SDLT liability to sellers as unjust and difficult to manage.
The study sought to gauge public sentiment towards two key government proposals on property taxation. Under the current system, buyers pay SDLT as a one-off cost when purchasing a property, while sellers have no such obligation.
The first proposed reform would transfer this responsibility to sellers of properties valued above £500,000, requiring them to pay SDLT upon sale. The second would abolish SDLT entirely, introducing instead a 0.5% annual property tax on homes valued over £500,000, calculated on the property’s current value.
Findings indicate that homeowners are largely sceptical of both reforms, with many concerned about the potential for increased financial strain—particularly among retired and older working households who have already paid off their mortgages. The prospect of an annual property tax is seen by many in this group as a substantial burden, threatening the financial security traditionally linked to homeownership.
The research also highlights broader market implications. Many homeowners indicated that either reform could discourage them from moving or selling, reduce incentives to improve their properties, and hinder social mobility. Respondents noted that an annual property tax or seller-paid SDLT could deter transactions and restrict movement within the housing market.
When asked which method of property taxation would be most equitable, 42% of those surveyed said that neither the annual property tax nor seller-paid SDLT would be fair. A recurring concern was the risk of “double taxation”, particularly for recent buyers who have already paid SDLT on their purchase. For these individuals, the introduction of an annual tax would represent an additional cost on a non-income-generating asset.
The research further revealed that 44% of respondents would face financial difficulty if an annual property tax were implemented, with 20% stating they would be unable to afford it. These figures underscore the perception that either reform would place extra pressure on existing homeowners, regardless of whether the liability is shifted to sellers or introduced as a recurring charge.
Retired homeowners are seen as especially vulnerable. Thirty-seven percent of respondents identified retirees as the group most likely to be adversely affected by an annual property tax. Among those aged 65 and over, 71% said retired homeowners would be hardest hit, and 66% in this age group believe such a tax would create financial hardship. Many in this demographic have structured their retirement around reduced living costs and mortgage-free homes, and the research suggests that an annual property tax could undermine this stability, especially for those reliant on fixed incomes.
Overall, 75% of respondents believe that both retired and working homeowners would bear the brunt of the proposed changes, raising questions about the long-term fairness and financial impact of the reforms.
The study also examined the potential effects on housing market activity. Thirty-five percent of respondents said they would be less likely to sell if sellers were required to pay a property tax, while 51% would be less inclined to purchase higher-value homes if an annual property tax were introduced. Only 24% indicated they would proceed with their plans regardless of the reforms. Among those aged 25 to 64, who are typically most active in the market, 52% said they would be less likely to buy a higher-priced property under the proposed annual tax. These findings suggest the reforms could lead to reduced market mobility, with fewer transactions and families remaining in unsuitable homes.
Long-term concerns were also prominent. When asked about the risk of future increases to an annual property tax, 96% of respondents expressed concern. Fifty-seven percent were very worried that the initial 0.5% rate could rise over time, and 77% of homeowners aged 65 and over shared this anxiety. The absence of clear exemptions or safeguards has led many to fear that their homes could become an unexpected financial liability.
“Our research shows a clear message from UK homeowners: the proposed changes to Stamp Duty Land Tax are widely viewed as unfair,” said Gerard Boon, managing director of Boon Brokers. “There is strong public opposition and widespread concern, with homeowners seeing the proposed reforms as financially challenging and likely to disrupt both personal finances and the broader housing market.”
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