Reform Stamp Duty to Save the UK’s Housing Sector

August 5, 2024

HMRC collected £11.6bn in stamp duty last year, but a temporary cut in 2022 drove receipts up to £17.5bn, fuelling calls for reform

David Hannah, Group Chairman of Cornerstone Tax, contends that reforming stamp duty could significantly transform the UK’s housing market

The latest research from Telegraph Money reveals several effective strategies for reducing stamp duty bills and this includes utilising exemptions for first-time buyers. Currently, first-time buyers benefit from significant exemptions with the UK’s stamp duty threshold at £425,000, but this is set to decrease to £300,000 in April 2025, reducing the number of stamp duty-free homes available. Presently, 58% of homes in England are stamp duty-free for first-time buyers, but this percentage is expected to fall sharply with the forthcoming policy change. HMRC collected £11.6bn in stamp duty receipts last year, underscoring the tax’s substantial impact on homebuyers and driving calls for reform, especially when a temporary cut drove receipts up to £17.5bn. David Hannah, Chairman of Cornerstone Tax, advocates for well-targeted reform, arguing that it could stimulate the property market. Stamp duty often deters people from moving, whether for work or to upsize, and limits options for those looking to downsize.

Research by Cornerstone Tax shows that 44% of people feel priced out of their desired locations due to rising house prices, with Hannah stating that maintaining current stamp duty thresholds would invigorate the property market and the national economy. With homes valued at £450,000 or less exempt from stamp duty and those between £450,000 and £925,000 facing a 5% levy, the thresholds are overdue for a review. Adjusting these bands would not only benefit first-time buyers but also aid pensioners looking to move up the property ladder. This increased demand for mid-to-high-end properties could have a positive ripple effect, boosting sales and energising Britain’s stagnant housing market.

David Hannah, Group Chairman of Cornerstone Tax, comments:

“SDLT payment bands have been long overdue for an overhaul as they have never been index-linked to house price inflation. An increase in these thresholds would stimulate activity at the lower end of the property market and allow first-time buyers to reduce the amount they need to borrow, thus improving their affordability calculations. Furthermore, creating an exemption for pensioners would allow more Brits to downsize freeing up homes for those wishing to get onto the property market.

“As we all know, a rising tide lifts all boats, those looking to purchase properties on the mid-to-high end of the property market will now have a chance to sell their low-end properties as a result of the increase in demand from prospective buyers, contributing to further momentum within the housing market.”

EAN Content

Content shared by this account is either news shared free by third parties or advertising content from third parties and affiliations.. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Breaking News

Persistent decline to give way to recovery in 2027

Glenigan’s Autumn 2026 Construction Forecast maintains that sector growth will revive in 2027, despite a challenging year of market stagnation Following a sluggish end to 2026, construction is set to rebound from 2027 onwards as public sector building increases Significant value gains expected for health, education, civils, offices and data centre projects Private and social…
Read More →
Estate Agent Talk

The Plumbing and Electrical Problems That Quietly Kill Sales and Lettings

We’ve all had one of these. The offer’s agreed. Everyone’s happy. The memorandum of sale has gone out, and you’re already mentally banking the fee. Then the buyer’s survey comes back. “Electrics appear dated. Recommend inspection by a qualified electrician.” And just like that, the mood changes. The buyer starts asking about a reduction. The…
Read More →
Breaking News

Rental price and average salary tracker – October 2026

Rental prices rise across most regions as affordability pressures persist Average monthly rents increased in eight of the 11 regions between September and October, with Wales recording the largest rise at 31.1%, followed by the North East at 29.8% and the South West at 7.5%. Scotland, London and the North West were the only regions…
Read More →
Letting Agent Talk

Portfolio landlords have outgrown traditional property management

By Adam Hills, Client Services Director, LRG Living Markets The residential lettings industry still manages many large portfolios as though they’re simply collections of individual tenancies. While that works on small portfolios, but it doesn’t work when landlords own 50, 100 or 200 properties. At that point, the challenge is no longer property management alone…
Read More →
Breaking News

Real-life value of the most famous Christmas film homes

The real-life value of the most famous Christmas film homes, from budget classics to multimillion-pound mansions New research has gathered and analysed the estimated valuations of real homes featured in popular Christmas films, ranking them by cost. The priciest homes are featured in The Holiday, Trading Places, and Home Alone, with Amanda’s home from The…
Read More →
Estate Agent Talk

77% of buyers refuse to buy a flood risk property

Despite 4.7 million English homes facing flood risk New research from Lyons Bowe has revealed that 77% of homebuyers would not consider purchasing a property in a flood risk area, despite more than 4.7 million homes across England currently being deemed at risk of flooding. The findings come as the Government launches a new flood taskforce amid…
Read More →