In a bold announcement at the Conservative Party Conference in Manchester, party leader Kemi Badenoch pledged to abolish stamp duty in England if the Conservatives return to power. The move has generated significant discussion within the property industry, particularly in London and the South East, where the tax burden is highest.

What was announced?

Badenoch described stamp duty as a “bad tax” that prevents people from moving, restricts social mobility and damages the economy. Instead of simply adjusting thresholds, she proposed scrapping stamp duty altogether for primary residences - regardless of price.

The policy would not apply to:

• Second homes
• Properties purchased by companies
• Homes bought by non-UK residents

It would also apply only in England, since Scotland and Wales operate separate property tax systems.

Industry reactions

The proposal has been widely welcomed across the housing sector.

• Richard Donnell, Zoopla’s executive director, explained: “Stamp duty hits four in five homeowners and two in five first-time buyers across the country, especially southern England where 60% of all stamp duty is paid. We welcome any proposals that remove the financial barriers to moving home.”
• Our very own David Matthews, Director at Dutch & Dutch, added: “This announcement will certainly shake things up a bit. It will have a very significant impact on the number of property transactions, especially in the South East, where stamp duty can account for up to 10% of the cost of buying a new home. It will be interesting to hear about how this huge tax cut will be funded.”

What this could mean for London buyers and sellers

For homeowners and buyers in London, where average property values are significantly higher than the UK average, the removal of stamp duty could represent life-changing savings. A move that previously felt financially out of reach could suddenly become achievable.

• First-time buyers: Lower upfront costs could make stepping onto the ladder in areas like Shepherd’s Bush, Queens Park and Maida Vale more realistic
• Upsizers and downsizers: Families looking for more space in Ealing or downsizers moving into a more central apartment in West Hampstead could act more freely without stamp duty considerations
• Investors: While the policy won’t apply to second homes or company purchases, a more fluid market could still create stronger opportunities for rental demand in West London

Ultimately, scrapping stamp duty would likely increase movement across all price brackets, supporting a healthier, more dynamic housing market in the capital.

The bigger picture

Stamp duty has long been criticised as a tax that discourages mobility and slows down the housing chain. If Badenoch’s pledge is delivered, it would mark one of the most significant shake-ups to the English housing market in decades - with particular benefits for London and the South East.

How Dutch & Dutch can help

At Dutch & Dutch, we understand the impact that changes to taxation and legislation can have on your property journey. Whether you’re buying, selling, letting or investing in London, our team is here to provide expert guidance every step of the way.

We’ll continue to keep our clients updated on all thing's property-related, ensuring you have the insight you need to make informed decisions.

Looking to move, buy or sell in North West London? Get in touch with Dutch & Dutch today on 020 7794 0075 - we’re here to help.