SDLT ‘biggest barrier to homeownership’ and should be scrapped – agents

The majority of estate agents support Chancellor Rachel Reeves’ plans to overhaul property taxation by scrapping Stamp Duty, says GetAgent boss Colby Short (pictured).

In research carried out by the estate agent comparison site, 44% of estate agents argue that the new levy should be focused only on higher-value homes, while 79% favour abolishing SDLT outright without introducing a replacement.

And 66% either strongly or somewhat support the notion of potentially replacing SDLT with a seller-side levy, compared with just 13% who oppose it.

significant impact

Almost all respondents (92%) believe that removing the upfront cost of Stamp Duty for buyers would encourage more people to enter the market, with nearly half of those (47%) believing it would have a significant impact. This reflects a widespread view that reform could reinvigorate buyer demand by removing one of the biggest barriers to homeownership.

The research, though, found opinion is more divided on the design of any replacement tax. The proposed threshold for the new levy is homes valued above £500,000. Nearly half of agents (49%) said this was about right, but 44% argued it should be set higher to avoid penalising mainstream sellers.

There is also a strong appetite for more radical reform. Almost four in five agents (79%) said SDLT should be abolished without replacement, while just 15% favoured replacing it with a different property tax and only 10% supported retaining it in its current form.

Stamp Duty has long been one of the biggest barriers to homeownership and removing upfront costs for buyers would undoubtedly stimulate demand.”

In addition, agents expressed concern about unintended consequences. If a seller levy were introduced, 96% expect many homeowners to increase their asking price to offset the cost, potentially limiting the benefits of the reform. Despite this, 71% believe the overall impact would be positive, with just 14% predicting it would harm the market.

Short says: “Stamp Duty has long been one of the biggest barriers to homeownership and removing upfront costs for buyers would undoubtedly stimulate demand.

But adds: “Our research shows scepticism about simply shifting the burden onto sellers and one potential path forward would be allowing buyers to spread this hefty upfront cost over a number of years post-purchase.”

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Author: Gemma