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Financial experts back Tory leader Kemi Badenoch's pledge to abolish stamp duty: "Easiest way to rebuild our economy"

ended 08. October 2025

FINANCIAL experts have backed Tory leader Kemi Badenoch's pledge to abolish stamp duty – saying it is the "easiest way to rebuild our economy"

Badenoch announced during the Conservative conference in Manchester today that, if elected, she would scrap stamp duty, a tax levied on new home buyers.

She said: "At the heart of a Conservative Britain is a country where people who wish to own their first home, can. But our housing market is not working as it should."

"The next Conservative government will abolish stamp duty," she added.

You currently have to pay stamp duty on purchases over £125,000 – or over £300,000 for first-time buyers.

The Conservatives claim this would cost £9bn a year to the Treasury.

Under its plans, stamp duty would still apply to additional properties and properties bought by companies, and for purchases by non-UK residents.

Pete Mugleston, Mortgage Advisor & Managing Director at Derby-based onlinemortgageadvisor.co.uk, hailed the move.

He said: "Stamp duty is a transactional tax that discourages mobility and dampens economic activity. Hundreds of thousands of Brits are stuck in homes that no longer suit them because of the tax penalty on downsizing. 

“Badenoch’s plan could spark a surge in housing market activity, but she’ll need to explain how the lost revenue will be replaced. A fairer long-term solution could be an annual property tax that’s more progressive and less distortionary.”

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said the tax is the reason why the property market is struggling.

He added: "It’s a bold move by the Conservatives that will resonate with almost every homeowner and potential first time buyer. Potentially the cruelest tax, stamp duty is without doubt the main reason why our property market has hit the buffers, denting confidence and reversing our economy. 

“What the government loses in revenue they will claw it back in many other tax opportunities, this is the easiest way to give confidence to the UK population and rebuild our economy.”

Eamonn Prendergast, Chartered Financial Adviser at Palantir Financial Planning Ltd, said 

He continued: "Stamp duty has long been one of the most damaging and distortionary taxes in the housing market – it traps people in homes that no longer fit their needs and freezes mobility. 

"So the idea of scrapping it will be popular and politically powerful. But unless it’s matched with serious action on housing supply, it risks simply pushing prices higher and making affordability worse. 

"The truth is, the problem isn’t just tax, it’s the lack of homes. Without planning reform and incentives to build, abolishing stamp duty could end up helping sellers more than buyers. It’s a welcome headline, but it must be backed by substance if it’s going to make real change."

Rob Mansfield, Independent Financial Advisor at Tonbridge-based Rootes Wealth Management, said there is still more to be done.

He said: "Removing hurdles in the home buying process is a great idea as it is one less cost for people moving up and down the property ladder. It does nothing to address the lack of supply of homes, which is the bigger problem. The question is how or who pays for this to balance the books."

 

6 responses from the Newspage community

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Editor
Pete MuglestonVerified
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
Stamp duty is a transactional tax that discourages mobility and dampens economic activity. Hundreds of thousands of Brits are stuck in homes that no longer suit them because of the tax penalty on downsizing. Badenoch’s plan could spark a surge in housing market activity, but she’ll need to explain how the lost revenue will be replaced. A fairer long-term solution could be an annual property tax that’s more progressive and less distortionary.
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Editor
Justin MoyVerified
Managing Director at EHF Mortgages
It’s a bold move by the Conservatives that will resonate with almost every homeowner and potential first time buyer. Potentially the cruelest tax, Stamp Duty is without doubt the main reason why our property market has hit the buffers, denting confidence and reversing our economy. What the government lose in revenue they will claw it back in many other tax opportunities, this is the easiest way to give confidence to the UK population and rebuild our economy.
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Editor
Eamonn PrendergastVerified
Chartered Financial Adviser at Palantir Financial Planning Ltd
Stamp duty has long been one of the most damaging and distortionary taxes in the housing market it traps people in homes that no longer fit their needs and freezes mobility. So the idea of scrapping it will be popular and politically powerful. But unless it’s matched with serious action on housing supply, it risks simply pushing prices higher and making affordability worse.
The truth is, the problem isn’t just tax it’s the lack of homes. Without planning reform and incentives to build, abolishing stamp duty could end up helping sellers more than buyers. It’s a welcome headline, but it must be backed by substance if it’s going to make real change.”
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Editor
Rob MansfieldVerified
Independent Financial Advisor at Rootes Wealth Management
Removing hurdles in the home buying process is a great idea as it is one less cost for people moving up and down the property ladder. It does nothing to address the lack of supply of homes, which is the bigger problem. The question is how or who pays for this to balance the books.
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Editor
Mike StatonVerified
Director at Staton Mortgages
This is a statement purely aimed at hammering the final nail into the coffin of the wounded Labour party. There has been many shoutouts about the unjust cost of stamp duty whilst purchasing a property and I believe this statement is more of a point scoring act than anything else. Stamp duty is a vary lazy and easy way for the current government to make money albeit at the detriment of the housing market. A decrease or complete abandonment of stamp duty would stimulate the market, creating jobs and generating revenue in the form of income tax, corporation tax and VAT but the current government seem too short sighted and appear to want to only focus on quick wins through what can only be described as smash and grab tactics to generate revenue. While I welcome the Conservatives' view on aboloshing taxes, I feel it is nothing more than a game of chicken being played out by two outdated and out of touch political parties.
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Scott GallacherVerified
Director at Rowley Turton
As they, say Opposition is easy but when you get into government, things are nuch harder. So whilst it might win votes, and serve to boost the housing market, I'm not sure that throwing around £9bn a year tax cuts is the way out of the budget deficit the government is currently in. And I'd question what spending cuts, or other tax rises, Kemi will need to make to deliver this pledge.