A cross-party group of MPs has called for a major review of stamp duty as part of a wider package of measures designed to improve home ownership affordability and help more first-time buyers onto the property ladder.
In a new report published by the Housing, Communities and Local Government (HCLG) Committee, MPs warned that home ownership has become increasingly out of reach for many households, particularly those unable to rely on financial support from family members.
The committee said the Government should launch a consultation before the end of 2026 to examine alternatives to Stamp Duty Land Tax (SDLT), arguing that the current system creates friction within the housing market and can act as a barrier to mobility and home ownership.
While acknowledging that stamp duty generates significant revenue for the Treasury, the committee said reform should be considered alongside a wider overhaul of council tax to ensure any replacement remains fair and fiscally sustainable.
PIPE DREAM
Florence Eshalomi MP (main picture, inset), Chair of the Housing, Communities and Local Government Committee, said: “Rates of home ownership in England have declined over the last 20 years. For many people, and especially for those unable to draw upon the bank of Mum and Dad, the prospect of owning a home is little more than a pipe dream.
“No silver bullet exists but the government can apply a range of supply and demand-side measures to help people get on the property ladder.”
The report concludes that increasing housing supply remains critical but warns that delivering the Government’s target of 1.5 million new homes during this Parliament is unlikely, on its own, to solve affordability challenges.
EMPTY HOMES
Alongside stamp duty reform, MPs have called for councils to be given greater powers to bring empty and under-occupied homes back into use. The committee noted that hundreds of thousands of residential properties across England remain vacant, many for extended periods.
The report also backs the replacement of the Lifetime ISA with a new savings product focused specifically on supporting home ownership.
However, MPs warned that any replacement should avoid the static property price caps that have rendered Lifetime ISAs ineffective in some parts of the country.
The committee also welcomed Government plans to review mortgage lending rules, improve shared ownership and continue the transition away from leasehold towards commonhold ownership models.
STAMP DUTY ALTERNATIVES
Eshalomi added: “Reform of stamp duty is necessary but, especially given the public finance implications, this cannot be done in isolation or without a credible alternative in place.
“We urge the Ministry of Housing, Communities and Local Government and HM Treasury to consult on alternatives to stamp duty that can deliver long-term benefit and not a short-term fix which only distorts the housing market and exacerbates the affordability problem.”
The report now places additional pressure on ministers to outline how they intend to tackle affordability as part of wider housing reforms over the remainder of this Parliament.
POSITIVE STEP
David Morris, Head of Homes at Santander UK said: “Stamp duty has been stifling the housing market for years – preventing older homeowners from downsizing and shutting younger buyers out of the homes they need.
“Our 2025 report ‘Fixing the Broken Chain’ revealed that the housing market is failing today’s buyers and sellers, with one in three transactions collapsing, costing the UK economy £1.5 billion every year. While work is underway to make homebuying and selling faster and bring more certainty for those in chains – the costs of Stamp Duty remains one of the clearest barriers to progress.
“Today’s report from the Housing, Communities and Local Government (HCLG) Committee is a positive step. It’s an opportunity to move the conversation along from building more homes to reviewing how we can use the stock we already have correctly, freeing up unused bedrooms in the UK, unlocking mobility and giving more people a fair shot at homeownership.”
