Landlords miss out on Conservative promise to scrap stamp duty

The Conservatives have pledged to scrap stamp duty if they win the next election.

Speaking at the Conservative Party Conference, leader Kemi Badenoch says stamp duty is one of the biggest barriers to home ownership.

However, the policy will only apply to primary residences.

We must free up our housing market

Stamp duty is paid as a lump sum by homeowners upon completing the purchase of a property if the property price is above a certain threshold. From April 2025, stamp duty thresholds in England were lowered.

For first-time buyers, the exemption threshold dropped from £425,000 to £300,000, while for standard residential properties, it fell from £250,000 to £125,000.

Ms Badenoch told the conference the housing market is not working as it should be and pledged to abolish stamp duty.

She said: “Young people trapped in the pain of renting, workers who want to further their career. Pensioners who want to downsize but can’t afford the thousands of pounds they have to pay in tax. Conference, Stamp Duty is a bad tax. It is an unconservative tax.

“The last Conservative government cut stamp duty for thousands of homebuyers. But now we must go further, we must free up our housing market.

“The next Conservative government will abolish stamp duty on your home. It will be gone.”

Only apply to primary residences

However, in a Conservative party press release, it confirms the abolition of stamp duty will only apply to primary residences and will not apply to additional homes or properties purchased by companies.

A Tory spokesperson also confirmed to The Telegraph the policy would only be for people in England.

They told the newspaper: “Under Kemi Badenoch’s leadership, we want to support the public in taking the first step to building a family, building wealth, and building communities that last.

“Stamp duty is devolved in Scotland and Wales, so it would be up to the administrations there whether to replicate the cut or not.”

Property industry reaction

Nathan Emerson, CEO of Propertymark, said: “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 on the lead up to April, followed by an immediate lull in the months that followed.

“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.”

Richard Donnell, executive director at Zoopla, comments: “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.”

Tom Bill, head of UK residential research at Knight Frank, said: “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. 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.”