Conservatives outline a bold stamp duty pledge for primary residences
In a keynote policy-focused address at the party conference, Conservative leader Kemi Badenoch laid out a plan that would abolish stamp duty on the sale of primary residences in England and Northern Ireland. If the Conservatives win the next election, buyers would no longer pay stamp duty on homes purchased for more than £125,000, a move the party argues would simplify the housing market and boost first-time buyers.
What would change and who would be affected?
The proposed abolition would remove the stamp duty charge for primary residences bought by individuals, starting at the £125,000 threshold. Stamp duty would still apply to purchases of additional properties, as well as properties bought by companies and by non-UK residents. The Conservatives estimate that scrapping the tax on primary residences would cost the Treasury about £9 billion a year.
Financing the policy with spending reductions
Badenoch insisted that the policy could be affordable thanks to a separate plan to implement nearly £50 billion in spending cuts by 2029. While economists voice caution about the vagueness and measurability of those promised cuts, the Conservative leadership argued that the combination of tax relief and spending restraint would create room for tax cuts and deficit reduction after the election.
Aimed at broad swathes of voters
Speaking to supporters, Badenoch framed the policy as an opportunity to make home ownership a more attainable goal for all generations. She said: “Home ownership should be a dream that’s open to everyone.” She emphasized that scrapping stamp duty would benefit a broad demographic, from young professionals buying their first flat to growing families seeking their forever home.
Context and competing proposals
The idea of replacing stamp duty with another form of property tax has been floated by Labour’s Rachel Reeves, the chancellor, though insiders suggest a reform or replacement is unlikely in this year’s budget. Badenoch’s pledge sits amid a flurry of conference announcements that also touched on leaving the European Convention on Human Rights, repealing parts of the Climate Change Act, and reducing welfare spending.
Strategic timing and political messaging
Analysts note that the pledge appears to be part of a broader strategy to boost the Conservatives’ economic credibility after a year of mixed signals. Badenoch has stressed that the party should not publish its full policy platform before the next general election, but this speech signals a shift toward policy specificity on fiscal matters. She reminded delegates that the party would need to demonstrate the ability to secure both revenue and growth, especially after controversies from recent leadership episodes.
Looking ahead: what this means for voters and the housing market
If enacted, the stamp duty abolition on primary residences could accelerate the pace of housing transactions and reduce upfront costs for new buyers. Supporters argue the move would stimulate demand and help first-time buyers enter the market, while critics warn it could erode government revenue and disproportionately benefit higher-priced property purchases in hot markets. The policy’s fate will hinge on broader fiscal negotiations and how it sits with any future tax reform agenda.
Conclusion
As the party positions itself around economic credibility and growth, Badenoch’s stamp duty pledge highlights a central question for voters: should the government prioritize broad tax relief to unlock home ownership, or recalibrate the tax system to balance the books? The coming months will reveal how far the Conservatives are prepared to go in turning a landmark housing policy into a tangible electoral promise.
