Industry voices highlight potential market impact and concerns over tax plan
The Conservative Party’s proposal to abolish stamp duty on main residences in England and Northern Ireland has prompted a strong response from mortgage brokers, who highlighted both the potential benefits and challenges of the policy.
Adrian Anderson (pictured top left), managing director of London mortgage broker Anderson Harris, described the move as “a major structural tax shift, not a marginal tweak.” He noted that the announcement diverges from previous speculation about Labour’s stance on stamp duty land tax (SDLT), particularly for higher value properties.
“The measure would disproportionately benefit higher value housing markets, for example, London and the Southeast,” Anderson said. “As this would likely not apply to buy-to-let or second homes, the message is still ‘you will have to pay extra to invest in buy-to-let or second homes’.”
Anderson also pointed out that the immediate effect of scrapping stamp duty would be a reduction in the “friction costs” of moving, as the tax acts as a barrier. However, he cautioned that sellers may raise asking prices, especially for higher value properties.
For Damien Jefferies (pictured top centre), founder of prime real estate brokerage Jefferies London, stamp duty is “a significant financial barrier for homebuyers across the board.” As it has “long been one of the key factors restricting mobility within the market”, he believes that removing the tax could stimulate activity at all levels, from first-time buyers to high-net-worth individuals, and reinvigorate sentiment across the wider economy.
“For prime London in particular, the impact could be transformative,” Jefferies said. “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.”
Nick Jones (pictured top right), mortgage sales and marketing director at mortgage and protection brokerage Access FS, called stamp duty “a regressive tax” and welcomed the prospect of its removal.
“Anyone who is looking to purchase a home or who already owns one and is thinking of moving will be extremely happy with this proposed policy change – along with many economists,” Jones said.
He argued that stamp duty penalises both first-time buyers and those needing to upsize, while also discouraging older homeowners from downsizing. “It even hits tenants – how else do landlords recoup the money they spend on the surcharge but through higher rents?” he added.
According to Jones, the tax also affects those relocating for work, describing it as “a tax on mobility which, therefore, limits Britain's economic efficiency.” He acknowledged, however, that the question of what might replace stamp duty remains unresolved, suggesting that refreshing the 1991 council tax valuations could be considered.
Conservative Party leader Kemi Badenoch on Wednesday has pledged to abolish stamp duty on main residences in England and Northern Ireland if re-elected, removing the tax on property purchases above £125,000 for owner-occupiers. The tax would still apply to additional properties, corporate purchases, and non-UK buyers.
Badenoch said the policy is funded by a planned £50 billion cut in public spending by 2029, though some economists question the feasibility of these savings. The party estimates the change would reduce Treasury revenues by £9 billion a year.
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