Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
MPs Urge Major Stamp Duty Reform to Address Homeownership Barriers
A cross-party committee of MPs has called for significant reforms to Stamp Duty Land Tax, arguing that the current system creates barriers to homeownership and slows property market activity. The Housing, Communities and Local Government Committee published a report this week stating that Stamp Duty "reduces the affordability of home ownership, slows the property market, and ultimately damages the economy."
The committee is urging the government to launch a consultation on potential reforms by the end of 2026. Options under consideration include abolishing Stamp Duty entirely, reducing rates, revising thresholds to reflect local property values, and updating existing reliefs and exemptions.
The report acknowledges that Stamp Duty is a "valuable source of revenue for public finances" but concludes that the tax "must not be maintained in its current form and needs to be reformed." Treasury data cited in the report shows Stamp Duty receipts totalled £4.3 billion in the first four months of 2026, which is approximately 6% lower than the same period in 2025. This decline comes as estate agencies continue to consolidate amid challenging market conditions.
Committee Chair Florence Eshalomi highlighted that homeownership rates in England have declined over the last 20 years, noting that for many people, especially those without family financial support, owning a home remains out of reach. The committee also recommended that any review of Stamp Duty should be conducted alongside Council Tax reform to address the wider housing affordability crisis.
A Treasury spokesperson told The Telegraph that first-time buyers currently pay no Stamp Duty on properties worth up to £300,000 and can claim relief on purchases up to £500,000. The government has not yet responded to the committee’s call for a consultation.
The property sector continues to debate the impact of transaction taxes on market liquidity. While technology adoption is increasing across the sector, tax policy remains a key factor affecting buyer behaviour and investment decisions in UK property markets.
Source: PropertyWire