Kemi Badenoch has pledged to abolish stamp duty on home sales, describing it as an “unconservative tax” that denies millions the chance to own a home.

In a surprise announcement during her closing speech at the Conservative Party conference in Manchester (main picture), the party leader said removing the levy would be “the key to unlocking a fairer society” and reviving social mobility.

“We must free up our housing market, because a society where no one can afford to buy or move is a society where social mobility is dead,” Badenoch told delegates. “It will benefit people of all generations.”

She said she had considered raising stamp duty thresholds but concluded that “tinkering at the edges” would not go far enough. “The next Conservative government will abolish stamp duty on your home,” she declared to applause.

CHAIN REACTION

Badenoch argued that every home purchase sets off a “chain reaction” of economic activity — from removals and renovation to DIY and furniture spending — and said removing the tax would stimulate wider growth.

However, she stopped short of outlining how the pledge would be funded. The party said the policy would comply with Badenoch’s new “golden rule”, which requires that half of the proceeds from any tax cuts go towards reducing the deficit.

Conservative officials claim to have identified £47 billion of potential public sector savings, including reductions in welfare spending, to help offset the cost of abolishing stamp duty.

ECONOMIC GROWTH

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

MORTGAGE SPIKE

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

But he added: “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.”

A NEGATIVE PRESSURE

Nathan Emerson, chief executive 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.”

VOTE WINNER

Paula Higgins, Chief Executive of the HomeOwners Alliance, says: “We strongly support the Conservative Party Leader’s call to abolish stamp duty.

“We’ve long campaigned to scrap stamp duty for people buying a home to live in.

“Kemi Badenoch is right: it’s a tax that traps households, hampers mobility and suppresses market activity. Homeownership is the foundation of a fairer and more secure society – but stamp duty has denied that opportunity to too many for too long.

“Our research shows over 800,000 homeowners have shelved moving plans in the past two years, and stamp duty is a major barrier.

“By scrapping it, we don’t just help first-time buyers: we unlock supply, free up stock, stimulate related trades and get the housing market moving. This will be a real vote winner.”

OUTDATED AND REGRESSIVE

Richard Sexton, the commercial director of proptech HouzeCheck, said: “Stamp Duty land Tax (SDLT) is an outdated, regressive tax that burdens anyone aiming to buy a home.

“Existing homeowners and potential first-time buyers should cheer to hear of its proposed removal.

“SDLT inflates the already hefty costs of purchasing a property.

It unfairly punishes those who’ve saved to buy a home but now need to upsize or move for work, while also discouraging older homeowners from downsizing – even when their large homes are no longer needed.

“Tenants aren’t spared either – landlords offset the surcharge through higher rents.

“Not only does it cost a great deal of money, it is also hampers Britain’s economic efficiency by discinsentising relocation for work. I welcome its proposed abolition.”