Kemi Badenoch's pledge to abolish stamp duty

As with everything the devil is in the detail, and they are making a massive assumption they will be voted in when massively behind in the polls, but on the whole this could be a good move. It raises more questions and problems than it solves though as, will it be scrapped completely or will it be scrapped and replaced with something else? First-time buyers do have an element of exemption currently but scrapping it will also help with the tax burden of higher value properties, downsizing and also the additional levy that investors and landlords pay.

We’ve seen reductions and pauses to Stamp Duty before and they do a great job of igniting the property market. It’s about time it disappeared, this is a good policy and it will be well received. But, a Tory government is years away, if at all, and it looks like the Chancellor will be tinkering with property tax next month. So for the time being, Stamp Duty is going nowhere and the government need to do something quickly to stimulate the property market.

Of course scrapping stamp duty will be hugely welcome and positively received, but the detail is what will be brought in to replace it? The government cannot afford to lose that revenue, so surely will be just paid via some other part of the transaction as the current government has also suggested.

When you’re in opposition and unlikely to win power, you can promise whatever you like because you know you won’t have to deliver it. Scrapping stamp duty sounds great in a conference speech, but it’s a distraction from the real issue: the lack of affordable homes. Getting rid of the tax won’t suddenly make buying easier it’ll just push prices up further without tackling supply. If politicians were serious about helping first-time buyers, they’d focus on planning reform and building homes people can actually afford, not soundbites.

Stamp Duty is singlehandedly slowing the property market to a crawl, so this significant pledge by Conservatives will be welcomed not only by those looking to buy, but the industry as a whole. Scrapping this tax will encourage greater home ownership, especially those in expensive areas who have faced potential Stamp Duty costs of £30-40k on family homes. I don't see this increasing property prices as long as it is seen as a long-term strategy, whilst demand will automatically increase, there will equally be more supply as those waiting for improvements will be taking this opportunity to move.

Abolishing stamp duty would be a bold move and politically popular but the question is how it’s funded. Stamp duty freezes the housing market, trapping older owners and locking out first-time buyers, so reform is long overdue. But a total abolition risks driving up prices unless supply improves too. The real issue isn’t just tax on transactions it’s the chronic shortage of homes. Without addressing that, cutting stamp duty may simply pour fuel on the fire.

If Badenoch genuinely wants to boost mobility and ownership, reform should go hand-in-hand with planning and supply-side action, not just tax cuts. Still, it’s refreshing to hear housing back at the centre of the political debate for too long it’s been the forgotten cornerstone of economic growth

Politicians often say what they need to get elected. However, for Kemi, even if she agreed to abolish stamp duty and throw in a new car for every home purchased, that would still not be enough to get her party back in power. This is a desperate ploy from a desperate politician, even though stamp duty should be scrapped.

The Tories have got to that part of the electoral cycle they can say anything they want, and nobody listens due to their irrelevance. Althought the policy, itself, is not bad it would never take effect if they also want to call themesleves the party of financial prudence. Badenoch is scratching around to find some direction whilst wondering in circles. She needs to find some light to walk towards but she has her eyes closed.

No government can realistically survive purely on showmanship. Even the boldest policy needs a backbone of credibility, and by that I mean clear rules, honest trade-offs, and a willingness to be held to account. However, on the surface, it would breathe new life into the property market, much like a flame beneath a bonfire on Guy Fawkes night.