Estate agents back Rachel Reeves’ stamp duty shake-up but call for abolition without replacement tax
The latest research from GetAgent has revealed that the majority of estate agents in England are supportive of Chancellor Rachel Reeves’ plans to overhaul property taxation by scrapping Stamp Duty Land Tax (SDLT). However, 44% argue that the new levy should be focused only on higher-value homes, while 79% favour abolishing SDLT outright without introducing a replacement.
Rachel Reeves recently instructed Treasury officials to explore replacing SDLT with a “homeowner tax” levied at the point of sale. Proposals under consideration include a value-based levy similar to a “mansion tax” on homes above certain thresholds, alongside plans to modernise council tax, which still relies on early 1990s valuations.
The survey, commissioned by GetAgent, found that 66% either strongly or somewhat support the notion of potentially replacing SDLT with a seller-side levy, compared with just 13% who oppose it.
Almost all respondents (92%) believe that removing the upfront cost of stamp duty for buyers would encourage more people to enter the market, with nearly half of those (47%) believing it would have a significant impact. This reflects a widespread view that reform could reinvigorate buyer demand by removing one of the biggest barriers to homeownership.
Opinion is more divided on the design of any replacement tax. The proposed threshold for the new levy is homes valued above £500,000. Nearly half of agents (49%) said this was about right, but 44% argued it should be set higher to avoid penalising mainstream sellers.
There is also a strong appetite for more radical reform. Almost four in five agents (79%) said SDLT should be abolished without replacement, while just 15% favoured replacing it with a different property tax and only 10% supported retaining it in its current form.
Agents also expressed concern about unintended consequences. If a seller levy were introduced, 96% expect many homeowners to increase their asking price to offset the cost, potentially limiting the benefits of the reform. Despite this, 71% believe the overall impact would be positive, with just 14% predicting it would harm the market.
Colby Short, Co-founder and CEO of GetAgent.co.uk, commented:
“Stamp duty has long been one of the biggest barriers to homeownership and removing upfront costs for buyers would undoubtedly stimulate demand. Less friction within the purchasing process means more sales and, for agents, more commission, so it’s no surprise to see the majority back stamp duty reform in one form or another.
However, our research shows scepticism about simply shifting the burden onto sellers and one potential path forward would be allowing buyers to spread this hefty upfront cost over a number of years post-purchase.
Since rumours started to circulate there has been very little in the way of detail, but whatever may materialise, it’s clear that agents want a system that is fairer, more transparent and does not stifle market activity.”
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Just 17% of homes selling for more than £500k