Is stamp duty scuppering house price growth?

The only thing that will get this market movement is a concession on stamp duty. Is that likely? The government are more preoccupied with leadership challenges than getting on with the job they were elected to do. We need urgent action otherwise, we are going to continue having stagnation in the housing market, and that has serious knock-on effects.

Stamp Duty remains one of the largest stumbling blocks within the property market, especially for those who are no longer first-time buyers. This does create bottlenecks, not only for those looking to scale the property ladder, but also for those looking to downsize in their later years, seeing important equity potentially disappear due to stamp duty - thus, empty nesters stay in their larger homes for longer, whilst their properties could be better suited to families in need of space and location.

The incentive for people to buy or upsize has taken a battering since Labour have taken over. Reduced nil rate bands, no Help to Buy, and very little thought around government backed mortgages. SDLT has steadily increased since 2016 with 2 rises on additional homes and a surcharge on international buyers. Those investing in the UK from abroad pay an additional 7% which just isn’t seen by capital returns across many parts of the UK.

Stamp Duty in it's current form is a huge consideration to that family with children looking to upsize in particular. An often additional 5 figure cost of upsizing when you consider all the other costs involved in moving is disincentivising.
Certainly the Government should look at elderly downsizers and exemplifying them from SDLT to release larger family homes too

Stamp duty has absolutely become a drag on the UK property market, especially for people who want to move but feel financially “stuck”.
When you combine higher mortgage rates, the impact of the Renters Reform Act, and weaker sentiment generally, stamp duty is the extra weight that tips many households from “maybe we should move” to “let’s stay put”.

For people looking for a bigger property in particular, the jump in stamp duty can feel disproportionate. Families who’ve outgrown their homes are delaying decisions because the tax bill alone can wipe out years of savings. That naturally reduces the number of properties coming to market, which then slows activity across the whole chain.

Is it the main cause of falling prices? No, mortgage affordability is still the biggest factor.
But stamp duty is definitely amplifying the slowdown by discouraging mobility at a time when the market needs fluidity.

Should the Government revisit it?
Yes, with a more modern, flexible approach!

Stamp duty isn't a tax on moving. It's a tax on investing. Whether it's your first home or your thirtieth, or one you let out, you're committing serious money to look after something for years, and you're taxed the moment you commit. Make buying cost more and people buy less. I see it both sides: owner-occupiers who'd move but won't swallow the cost, and landlords thinking twice since the surcharge hit 5%. It bites hardest at the top, £1.2m and up, where the bills are biggest and upsizers simply stay put. And when nobody moves up, nobody below can move either. The whole chain seizes. It's not a simple lever, though. When stamp duty was cut after Covid, prices didn't fall, they rose. Demand rushed forward as buyers raced to beat the deadline. The effects rarely run the way people expect.