A group of MPs from across different political parties has called on Chancellor Rachel Reeves to review the future of Stamp Duty, arguing that the tax is placing unnecessary pressure on the housing market and making it harder for people to buy and move home.
The recommendation comes from the Housing, Communities and Local Government Committee, which recently published a report examining housing affordability across England. The committee believes that while Stamp Duty remains a significant source of revenue for the Treasury, its current structure may be doing more harm than good.
According to the report, the tax can act as a barrier for both first-time buyers and existing homeowners. By increasing the overall cost of purchasing a property, Stamp Duty may discourage people from moving, reducing activity throughout the housing market and limiting opportunities for buyers and sellers alike.
MPs are now urging the government to launch a formal consultation before the end of the year to explore possible alternatives. The committee suggested that any replacement should be revenue-neutral, ensuring that public finances are protected while reducing the burden on homebuyers.
The report also recommends reviewing the existing Stamp Duty thresholds, tax bands and relief schemes. Committee members believe that a more flexible system could better reflect local housing market conditions and support wider government housing objectives.
Concerns about Stamp Duty have been growing within the property industry for several years. Many professionals argue that the tax creates obstacles for people looking to move home, particularly in areas where property prices have risen significantly.
Florence Eshalomi, Chair of the committee, highlighted the challenges facing prospective homeowners. She noted that home ownership rates in England have fallen over the past two decades and that many aspiring buyers now struggle to get onto the property ladder without financial support from family members.
She warned that for many people, especially those without access to assistance from parents or relatives, owning a home increasingly feels out of reach. As a result, the committee believes reforming Stamp Duty should form part of a broader strategy to improve housing affordability.
However, MPs also stressed that any changes must be carefully planned. While there is support for reform, the committee acknowledged the importance of protecting government revenues and ensuring that any replacement system is both practical and sustainable.
The report argues that changes to Stamp Duty should not be introduced in isolation. Instead, they should be considered alongside wider reforms to property taxation, including council tax, to create a fairer and more effective housing system.
Committee members also cautioned against introducing short-term tax incentives that may temporarily boost activity but create longer-term problems. They pointed to the Stamp Duty holidays introduced during the pandemic as an example.
While those temporary measures helped stimulate housing transactions, they also contributed to rising property prices in many areas. Once the relief ended, demand weakened and market activity slowed, highlighting the risks associated with short-term interventions.
The committee believes that future reforms should focus on creating lasting improvements rather than delivering temporary boosts that can distort market conditions.
Supporters of reform argue that reducing barriers to moving home could improve labour mobility, encourage housing market activity and help more people find properties that suit their changing circumstances.
Property industry groups have also welcomed calls for a review, with many suggesting that a more modern approach to property taxation could benefit buyers, sellers and the wider economy.
As housing affordability remains one of the government’s key challenges, the debate around Stamp Duty is likely to continue. Whether ministers decide to launch a consultation remains to be seen, but pressure is clearly growing for a fresh look at a tax that many believe no longer serves the housing market as effectively as it once did.
For now, MPs are calling for a long-term solution that supports home ownership, encourages market activity and delivers a fairer outcome for future generations of buyers.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property