This week our team attended the Propertymark conference. We are proud to share that both Hasan, Director and Crystal, our Branch Manager, were awarded Propertymark Fellowships.
The qualification is equivalent to one year of a university degree and recognises the sustained study and examinations our colleagues have completed. Emma in our office is also progressing through the same programme. As accredited Propertymark members, we remain committed to continuous learning and to providing expert, compliant advice.
The headline
There has been significant discussion about a reported Conservative policy proposal to abolish Stamp Duty Land Tax. Early suggestions to move thresholds appear to have been set aside. Removing stamp duty would reduce the upfront cost for homebuyers and could stimulate transactions, as seen during the pandemic. Any change would depend on political and fiscal priorities in the run up to the next election, so timing and scope remain uncertain.
Who would benefit
On closer reading of the press commentary, the proposal being trailed focuses on primary residences. It would not extend to additional properties, purchases made through companies or acquisitions by non-UK residents.
Potential market effects
Lower acquisition costs for homeowners typically increase demand. Increased demand often places upward pressure on prices. During the last market surge, UK average prices rose by 20.4 percent, or about £48,620, between January 2020 and December 2022. Existing owners could see further capital growth if demand rises again, although first time buyers may find affordability more challenging.
What else could change
With Labour having already ruled out rises in certain headline taxes, adjustments to property taxation may be considered in the November Budget. Ideas reported elsewhere include:
- Replacing stamp duty and council tax with a proportional property tax
- Increasing existing stamp duty rates for additional property purchases
If stamp duty is reduced or abolished, the Treasury would need to replace the lost revenue. Independent estimates suggest the gap could reach about £9 billion per year by 2029 to 2030, which means changes in one area may be offset elsewhere.
Our view
We recommend treating this as a live policy conversation rather than a confirmed plan. Over the next 6 to 12 months we will track announcements, model scenarios for both homeowners and investors, and update clients promptly. For now, investors should note that the floated abolition does not cover additional properties, company purchases or non-UK buyers, and should plan accordingly.
If you would like tailored guidance on how potential changes could affect your plans, speak to our team on info@home-share.co.uk.
