Conservative leader Kemi Badenoch has pledged to abolish stamp duty should her party win the next general election.
Speaking at the party’s annual conference in Manchester, the Conservative leader branded stamp duty an “unconservative tax”.
“The last Conservative Government cut stamp duty for thousands of home buyers,” Badenoch told delegates. “But now we must go further. 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.”
Reacting to the pledge, Tom Clougherty, executive director of the Institute of Economic Affairs, said: “Abolishing stamp duty is the single best reform any government could make to Britain’s tax system.
“As things stand, this outdated and uneconomic levy is wreaking havoc on our already troubled housing market by deterring sales and depressing house-building.
“Indeed, research suggests that the wider social and economic harms are equivalent to three-quarters of the revenue raised – and that’s on top of the loss to the people actually paying the tax.
“This means that stamp duty is many times more damaging, as a source of revenue, than broad-based taxes on income and consumption.
“Any proposal to permanently cut or abolish it is therefore extremely welcome.”
Nathan Emerson, CEO of Propertymark, added: “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.
“Propertymark welcomes 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.”
Richard Sexton, the commercial director of proptech HouzeCheck, concluded: “Stamp Duty land Tax (SDLT) is an outdated, regressive tax that burdens anyone aiming to buy a home. Existing homeowners and potential first-time buyers should cheer to hear of its proposed removal. SDLT inflates the already hefty costs of purchasing a property.
“It unfairly punishes those who’ve saved to buy a home but now need to upsize or move for work, while also discouraging older homeowners from downsizing – even when their large homes are no longer needed.
“Tenants aren’t spared either – landlords offset the surcharge through higher rents.
“Not only does it cost a great deal of money, it is also hampers Britain’s economic efficiency by disincentivising relocation for work. I welcome its proposed abolition.”
