Rightmove renews call for stamp duty reform as thresholds fail to keep pace with house prices

Fewer than one in 20 homes currently for sale in England are exempt from stamp duty for people moving to their next property, according to new analysis from Rightmove, which has renewed calls for reform ahead of the government’s November Budget.

The property portal found that just 5% of homes in England would be stamp duty free for home-movers, while only 40% of listings fall below the threshold for first-time buyers.

The figures underline how tax thresholds have failed to keep pace with rising property prices, leaving many buyers facing higher costs to move.

In London, virtually no homes on the market are exempt from stamp duty for movers, and only 11% fall below the first-time buyer threshold. In contrast, in the North East, 27% of properties are stamp duty free for movers and three-quarters qualify for first-time buyer relief.

Across the North West, 10% of homes are stamp duty free for movers and 61% for first-time buyers, while in the South East those figures drop to just 1% and 26% respectively.

The South West and East of England also remain among the least affordable regions when it comes to stamp duty exposure.

Rightmove said the tax has become a “significant barrier” to home-movers and called for a full review of stamp duty thresholds in the forthcoming Budget.

Colleen Babcock, Rightmove’s property spokesperson, said: “We’ve been calling for stamp duty reform for some time now, as it’s a significant barrier for many people moving home.

“Abolishing it completely would remove one of the biggest barriers to moving, unlocking more moves at all stages of the property ladder.”

She added: “Our data shows that only 5% of homes in England are exempt from stamp duty for people moving to their next home, and only 40% for first-time buyers.

“Looking ahead to November’s Budget, we would urge the government to review how stamp duty could be changed.

“Even changing the thresholds would be a helping hand for some, but if there was the possibility to go even further it would be a huge step forward for mobility across the property market.”