BREAKING NEWS: Tories will scrap Stamp Duty if win next election

The Conservatives will scrap Stamp Duty altogether if they win the next General Election, party leader Kemi Badenoch announced.

A surprised Tory faithful heard Badenoch made the pledge as the headline-grabbing climax to her speech in a packed hall in Manchester.

Massive boost

Many of the other announcements in her speech, had been trailed beforehand, but there had been no leaks of the Stamp Duty commitment.

A move to abolish Stamp Duty would give a massive boost to the property industry, and one that many have called for with little hope of it actually being done.

Whether the Tories would be able to deliver such an expensive tax cut, that would apply in England and Northern Ireland, is another matter of course, and Badenoch didn’t explain how it would be paid for.

The party says that the policy will only relate to primary residences irrespective of the price, not to any additional homes, or properties purchased by companies, or by non-UK residents. It would cost an estimated £9 billion, it is reported.

Abolish

Badenoch said: “At the heart of a Conservative Britain is a country where people who wish to own their first home, can.

“But our housing market is not working as it should. The next Conservative government will abolish Stamp Duty.”

Earlier in the week, Shadow Chancellor Mel Stride announced a National Insurance rebate for first time buyers.

Industry reaction

The portal

Richard Donnell, Executive Director at Zoopla

“Stamp Duty hits four in five homeowners and two in five first-time buyers across the country, especially southern England where 60% of all Stamp Duty is paid.

“We welcome any proposals that remove the financial barriers to moving home. More home moves would support economic growth and the ambition to build more homes.”

The agent

Tom Bill, Head of UK Residential Research at Knight Frank 

“Stamp Duty is the one lever politicians can pull that is guaranteed to have an immediate impact on the housing market.

“If bond markets feel confident that it has been fully costed and mortgage costs don’t spike, buyers and sellers would warmly welcome the move,” he says.

“It would inevitably have positive repercussions for the wider economy and increase social mobility. The only downside is that if the Tories are leading in the polls ahead of the next general election, the housing market could grind to a halt.”

The acquisition agency

Jennie Hancock, Founder and Director at West Sussex buying agency Property Acquisitions

“Stamp Duty is such a prohibitive tax, and that was clear for everyone to see when the temporary Stamp Duty holiday was introduced during covid.

“In over 30 years of working in the housing market, I’ve never witnessed such an instant and dramatic turnaround in the market,” she says.

“It’s unlikely the Conservatives will have the opportunity to implement this policy any time soon, but my hope is that after three years of property market stagnation, Labour takes note and recognises the vast economic benefits scrapping Stamp Duty would bring.”

The industry leader

Nathan Emerson, CEO at Propertymark

“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 in the lead up to April, followed by an immediate lull in the months that followed,” he says.

“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.”

Main picture: BBC News

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