Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
MPs Call for Stamp Duty Review Amid Housing Affordability Concerns
A cross-party committee of MPs has called on Chancellor Rachel Reeves to review the future of stamp duty, stating that the tax is undermining housing affordability, restricting market activity, and harming economic growth.
In a new report on housing affordability, the Housing, Communities and Local Government Committee said that while stamp duty remains an important source of Treasury revenue, it should not continue in its current form. The committee warned that the tax acts as a barrier to homeownership and reduces mobility within the housing market.
MPs have urged the government to launch a consultation before the end of the year to examine alternatives to stamp duty. Suggestions include a revenue-neutral replacement or reforms designed to stimulate property transactions. The committee also recommended reviewing existing thresholds, bands, and reliefs to better reflect local housing markets and support wider housing objectives.
The report adds to growing calls from across the property sector for changes to stamp duty, amid concerns that the tax is discouraging buyers and sellers from moving. MPs also called for any review of stamp duty to be considered alongside wider reforms to property taxes, including council tax.
The committee warned against temporary tax incentives, arguing that any changes should be designed for the long-term to avoid distorting the housing market. It referenced the pandemic-era stamp duty holidays, which helped fuel house price growth before demand weakened when the relief ended in April 2025.
For letting agents and inventory clerks, potential changes to stamp duty and related property taxes could impact transaction volumes and market activity, with implications for the wider UK property sector.
Source: Property Industry Eye