Conservatives promise stamp duty abolition for primary residences
The Conservative Party has announced a policy to abolish stamp duty on the purchase of primary residences in England and Northern Ireland, a move designed to bolster home ownership and bolster the party’s economic credibility ahead of the next general election. The pledge would see buyers pay no stamp duty on homes bought for more than £125,000, while the tax would remain in place for additional properties, commercial purchases, and buys by non-UK residents.
How the policy would work and its fiscal implications
Under the plan, stamp duty would be scrapped entirely for first homes up to a £125,000 threshold, with the Treasury estimating the measure could cost around £9 billion a year. The Conservatives argue that the change would stimulate the housing market and broader economic activity, particularly for first-time buyers and families seeking to secure a home. The policy is paired with a separate promise to find nearly £50 billion in spending cuts by 2029, which the party says would cover tax relief while maintaining deficit reduction.
Who benefits and who doesn’t
The proposal targets primary residences, aiming to reduce upfront costs for first-time buyers and households seeking to get on the housing ladder. It excludes additional properties, company purchases, and acquisitions by non-UK residents, meaning buy-to-let investors and foreign buyers would still face stamp duty. Critics worry that the measure could push up house prices by increasing demand or that it may be neutral if supply remains constrained.
Economic and political context
Policy announcements at the party conference underscored the Conservatives’ attempt to project stronger economic stewardship, even as other reforms were signalled. The conference featured a mix of proposals, including potential changes to rights and protections, and a broad agenda that ranged from constitutional reforms to welfare. Badenoch framed the tax cut as a way to make home ownership a more attainable objective across generations, saying the goal is to keep “home ownership a dream that’s open to everyone.”
What rivals say and the broader debate
Chancellor Rachel Reeves has been reported to be weighing a replacement of stamp duty with an alternative property tax, though sources indicate any shift may not occur in the current budget cycle. The policy debate around stamp duties is ongoing, with economists noting the need to balance tax relief with long-term fiscal sustainability. Badenoch’s language aims to position the Conservatives as fiscally responsible, arguing that the expenditure cuts would offset the cost of the tax relief.
Looking ahead
Whether the stamp duty abolition for primary residences becomes a central plank of the party’s platform will depend on the policy’s reception, its perceived affordability, and how it sits within the broader fiscal framework. Badenoch asserted that
bolishing stamp duty on your home is a key to unlock a fairer and more aspirational society, a line intended to resonate with a broad audience—from young professionals to growing families. The policy’s fate will unfold as the party continues to outline its economic approach in the lead-up to the next election.
Contextual note
In the wider political discourse, the Conservatives’ conference agenda proposed a range of reforms, including potential changes to human rights conventions and climate policy. The stamp duty pledge sits within a broader narrative of tax relief and deficit management, reflecting the party’s effort to balance short-term stimulus with longer-term fiscal discipline.
