Government should end stamp duty on certain properties according to RICS

New figures show that nearly half of respondents to the RICS Residential Market Survey suggest using tax incentives to encourage downsizing, while making changes to Stamp Duty and Council Tax would help thousands more young people realise their dream of owning their own home.

A housing tax overhaul including ending stamp duty on certain properties could rebalance the UK housing market and reignite activity across all tenures according to RICS.

Abdul Choudhury, RICS Policy Manager commented:

“It is not surprising that our professionals feel that residential property taxation is out of kilter. If we consider tax in terms of how they disincentivise certain behaviours, SDLT makes purchasing, moving and making more effective use of stock costly at a time when we need all these things. Council taxes, on the other hand are woefully out of date and are highly politicised.

“Any changes to the system of tax should be considered carefully, as they would have disruptive consequences that could negatively impact activity. Providing an SDLT exemption for downsizers could free up larger, underused properties; but will likely provide them with a market advantage over other participants. Similarly, replacing SDLT with council could increase house buying and selling activity; but increase day-to-day living costs at a time when occupiers are already facing higher bills.

“However, given the state of the housing market, it would be prudent for the government to consider the cumulative impact current taxes are having on behaviour and determine what changes can create a more sustainable and vibrant property sector. We would therefore urge the Government to undertake a full-scale review of the SDLT system – starting with what it hopes to achieve from this tax in terms of revenue generation, market fluidity or another objective.

“It is imperative that the Government recognises that markets need time to adjust to alterations to tax regimes as inconsistency is not conducive to the stable market that buyers and investors need. SDLT has seen a number of changes in recent years, with the market struggling to adapt to one change before another is introduced.

“Given that RICS professionals are front and centre of the residential market, we will be developing a critique of the housing buying tax options available to Government in the near future.”

Read the RICS surevey report 19th September 2018 in full click here

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Rightmove logo
Breaking News

Rightmove’s Weekly Mortgage Tracker – 18/09/25

Average rates for 2-year and 5-year fixed-rate mortgages   Term Average rate Weekly change Yearly change 2-year fixed 4.54% +0.02% -0.44% 5-year fixed 4.56% +0.01% -0.05%   Lowest rates for 2-year and 5-year fixed-rate mortgages   Term Lowest rate Weekly change Yearly change 2-year fixed 3.75% +0.00% -0.24% 5-year fixed 3.89% +0.00% +0.12%   Average…
Read More
Planning disputes on new build land
Estate Agent Talk

Slowdown in planning applications and decisions

Property lawyer says “The government have had a year to make improvements to house building and have not made any progress.” Housing Secretary Steve Reed has announced a “building acceleration package” to speed up house building in England after new figures revealed a slowdown in planning applications and decisions. David Smith, property litigation partner at…
Read More
bank of england interest rate
Breaking News

Bank of England’s holds interest rates at 4%

With the Bank of England’s decision to hold interest rates at 4%, here are some thoughts from the Industry.   Matt Smith, Rightmove’s mortgage expert: “A Base Rate hold today had looked fairly nailed on, especially after yesterday’s news that inflation remains stuck at 3.8%. The later-than-usual Budget is very much on the horizon, and…
Read More
Breaking News

Breaking Property News 18/09/25

Daily bite-sized proptech and property news in partnership with Proptech-X.   Exodus of Landlords – means lower supply and increased rents’ MPs have taken the Renters’ Rights Bill a major step closer to Royal Assent, confirming the scrapping of Section 21 “no-fault” evictions and the end of fixed-term tenancies, which will now convert into open-ended…
Read More
Breaking News

Energy Rules Without Power: Tenants and Landlords Both Question EPC Impact

New research from LRG reveals that both landlords and tenants are struggling to engage with the Energy Performance Certificate (EPC) system, raising serious questions about whether it can deliver on its intended goals ahead of the government’s 2030 targets. While landlords overwhelmingly support the principle of improving energy efficiency, confidence in the system designed to…
Read More
New Builds 2020
Breaking News

New Build Home Enquiries Double in Summer 2025 

From June to August 2025, Compare My Move’s conveyancing data shows a 120% increase in new build home purchase enquiries compared to the same period in 2024.  This surge reflects not only more people looking to buy homes overall but also a higher share of buyers choosing new builds. On average, 12% of purchase enquiries in…
Read More