Kemi Badenoch’s pledge to abolish stamp duty on home sales, which she described last week at the Conservative Party conference in Manchester as an “unconservative tax” denying millions the chance to own a home, has begun to draw criticism from mortgage and property professionals.
Jon Burridge, co-founder at London-based We Are Money, warned that removing the levy could fuel house price inflation rather than help buyers.
He told Mortgage Soup: “The removal of stamp duty is absolutely the last thing the property market needs.
“It will lead to an instant increase in asking prices, absorbing any potential buyers’ savings, with the greatest benefit going to owners of higher-priced properties. T
“he national purse would lose out, and the only winners would be vendors.”
RECYCLED POLICY
Burridge also criticised what he described as a government tendency to recycle policies with little effect.
“The rehash of the seller’s pack, tried last decade and as impactful as a fart on a windy day, shows how out of touch policymakers are with the needs of the population.
“We need more housing, more affordable owner-occupied homes, and prices at a level people can realistically manage without relying on family savings or schemes that over-inflate new-build costs.”
ECONOMIC IMPACT
Russell Quirk, property and politics commentator for TV and radio, echoed concerns over the wider economic impact.
Speaking to Mortgage Soup he said: “Let’s be clear on the Conservatives’ stamp duty bribe. It’ll cost £9 billion – the total SDLT income is £14 billion annually on primary and secondary homes.
“The UK property market does not need boosting. Values and transaction volumes are healthy, and first-time buyers represent a record share of total sales.
Quirk added that attention should be focused on supply rather than stimulating demand unnecessarily, questioning whether the promised £47 billion in savings is achievable.
DOUBLE DOWN
Despite the criticism, the government’s position was reinforced on Sunday by Sir Mel Stride MP, Shadow Chancellor of the Exchequer, who emphasised the social and economic benefits of abolishing the tax.
“Owning a house gives people a stake in society and helps them build roots in a community,” he said in a message to party members.
“Stamp duty punishes people for moving, prevents young people from buying their first property and stops pensioners from downsizing, reducing available homes on the market.
“Abolishing it will allow people to move to a house in the right place, with enough space. More movement means more business for local trades and a healthier housing market.”
Stride concluded by challenging opposition leaders to consider similar reform.
“If Keir Starmer and Rachel Reeves are serious about delivering growth in our economy, they should abolish stamp duty on main homes and help fix Britain’s broken housing market,” he said.
