Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

MPs Call for Stamp Duty Reform to Support First-Time Buyers

A cross-party committee has called on the government to reform stamp duty as part of a wider package to help first-time buyers. The Housing, Communities and Local Government (HCLG) Committee made the recommendation in a report published today.

The committee's report states that stamp duty is a significant source of public revenue, but recommends the government launch a consultation by the end of 2026 to examine potential alternatives. The report also suggests that stamp duty reform should be considered alongside council tax reform, as previously recommended by the committee.

The HCLG Committee highlights that home ownership rates in England have declined over the past 20 years, making it increasingly difficult for many people to get on the property ladder. The report urges the Ministry of Housing, Communities, and Local Government and HM Treasury to consult on alternatives to stamp duty that would provide long-term benefits without distorting the housing market or worsening affordability.

The report also notes that there are hundreds of thousands of empty residential properties in England, many of which have been vacant for extended periods. It recommends that the government make it easier for councils to take control of these empty properties by clarifying existing powers and providing new options to recover long-term empty homes. Bringing these properties back into use could help boost housing supply and reduce house prices.

The committee suggests that the stamp duty consultation should consider factors such as revenue-raising potential, impact on the property market, progressiveness, and fairness. Possible options include cutting stamp duty rates, replacing the tax with an alternative system, adjusting it to reflect local property prices, or updating reliefs and exemptions.

Additionally, the report welcomes the replacement of the Lifetime ISA with a new product focused on supporting homeownership, but recommends that it should not include a static property price cap, which could limit its usefulness in some regions.

These recommendations are relevant to UK letting agents and inventory clerks, as changes to stamp duty, council tax, and the management of empty homes could impact property transactions, rental demand, and the overall housing market.