Conservative leader Kemi Badenoch has vowed to abolish stamp duty if her party returns to power, describing the tax as a “bad” and “un-Conservative” barrier that restricts movement within the housing market. The announcement came as she closed the Conservative Party Conference in Manchester, where she set out her vision for reviving housing mobility and homeownership across the country.
In her speech, Badenoch addressed the long-standing challenges within the UK housing market, which she said is “not working as it should.” She pointed out that stamp duty continues to be “the big barrier that keeps getting in the way,” preventing people from buying, selling, or downsizing their homes. According to her, this outdated tax system is one of the major reasons so many Britons are stuck in housing situations that no longer meet their needs.
She went on to describe how stamp duty negatively impacts a wide range of individuals, from young renters who struggle to take their first step onto the property ladder, to professionals who want to move for work opportunities but are discouraged by the high tax costs of relocation. Badenoch also highlighted the difficulties faced by pensioners who wish to downsize but are put off by the significant tax bills that come with selling their homes and purchasing smaller properties.
“Stamp duty is a bad tax,” she declared to conference attendees. “It is an un-Conservative tax. Young people are trapped in the pain of renting, workers can’t afford to move, and pensioners who want to downsize are hit with thousands in unnecessary tax. We must change this.” Her remarks were met with strong applause from party members who have long called for reforms to make homeownership more accessible.
Under current rules, stamp duty applies to property purchases over £125,000 in England and Northern Ireland. However, first-time buyers benefit from an exemption on properties valued up to £300,000. Those buying homes above these thresholds pay a tiered percentage based on the property’s value. Despite previous adjustments aimed at easing the burden, many argue that the system still penalises those trying to move up or down the housing ladder.
Badenoch revealed that her proposal would completely remove stamp duty on main homes after 2029, offering long-term relief for buyers across the country. The Conservative Party estimated the policy would cost the Treasury approximately £9 billion per year, while the Institute for Fiscal Studies (IFS) suggested the figure could rise to between £10.5 billion and £11 billion annually, particularly once costs in Scotland and Wales are considered.
While the cost of the proposal has sparked debate, the idea has been warmly received by key figures in the property sector, particularly within the later living market. Tim Seddon, Chief Executive of Retirement Villages Group, expressed strong support for the plan, noting that abolishing stamp duty could help address the housing shortage and free up much-needed homes for younger generations.
“There are currently around 10 million unused bedrooms across the UK,” Seddon said, “most of them in homes owned by people over 65. Removing stamp duty would take away one of the biggest barriers to downsizing, as many older homeowners feel financially penalised for moving.” He added that this change could be a major step towards unlocking housing supply and improving overall market fluidity.
Seddon went on to explain that a more flexible housing market would not only benefit older homeowners but also help younger families. “Scrapping the tax would help release larger homes back into the market, giving more young people the chance to get onto the property ladder. The tax system should encourage downsizing, not discourage it,” he said. His comments echoed broader industry sentiment that reforming stamp duty could significantly improve housing accessibility.
Badenoch’s announcement came shortly after Shadow Housing Secretary James Cleverly criticised current affordable housing targets, claiming that they are so unrealistic they often “prevent anything from getting built.” The ongoing debate between both major political parties highlights the deep divide over how best to tackle the UK’s long-standing housing challenges.
Earlier in the week, reports surfaced that the Conservatives plan to make £4 billion in housing cuts starting in 2029–30. The proposed savings, according to party officials, would come from restricting benefits and social housing access to UK nationals, a move that has sparked mixed reactions among policymakers and housing advocates.
In her speech, Badenoch acknowledged that the previous Conservative government had already made progress in reducing stamp duty for many buyers but insisted that it was time to go further. “The last Conservative government cut stamp duty for thousands of homebuyers,” she said. “But that was only the start. We must now free up our housing market entirely.”
She revealed that her team had carefully reviewed the current thresholds and tax rates, exploring options to lower them. However, after consideration, she concluded that simply reducing rates would not be enough to create meaningful change. “I have looked at the stamp duty thresholds to see if we can change them. I have looked at the rates you have to pay to see if we can lower them. I have decided we can’t—because that simply wouldn’t be enough,” she explained.
Badenoch then delivered the most striking line of her address, declaring: “The next Conservative government will abolish stamp duty on your home. It will be gone.” The announcement drew strong reactions from both supporters and critics, with many praising the boldness of the proposal while others raised concerns about its fiscal impact on public finances.
If implemented, the policy could reshape the UK property market, particularly for downsizers and first-time buyers who are often the most affected by stamp duty costs. Industry experts suggest that removing the tax could encourage more movement in the market, helping to ease housing shortages and stimulate new development.
However, questions remain about how the Treasury would offset the significant loss of revenue. Analysts have warned that while the policy could encourage more transactions, it might also reduce government funding available for public services. Despite this, Badenoch appears determined to position the Conservatives as the party that restores social mobility and homeownership opportunities across Britain.
In summary, Badenoch’s stamp duty abolition plan signals a major policy shift aimed at revitalising the housing market and addressing key generational inequalities. While the proposal will require careful financial balancing, it has already ignited renewed discussion about how to make homeownership more achievable for millions of Britons—especially those currently trapped in homes that no longer fit their needs or ambitions.
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