Impacts of the Tories’ Proposed Abolition of Stamp Duty: Who Gains, Who Loses?

By Today International News
Published: October 9, 2025

A Major Shift in the Housing Market

The UK Conservative Party has announced a bold policy proposal: the abolition of stamp duty on primary residences in England and Northern Ireland. This move, led by party leader Kemi Badenoch, aims to make homeownership more accessible and stimulate the housing market. The policy is projected to cost the government around £9 billion annually, raising questions about who truly benefits and who might lose out.

Stamp duty is a tax paid by buyers when purchasing property, often amounting to tens of thousands of pounds for higher-value homes. By removing this tax, the government hopes to encourage more people to buy and move homes, potentially revitalizing the property sector.

Who Stands to Gain?

Homebuyers in High-Value Areas

Residents in regions such as London and the South East are likely to see the biggest savings. For example, purchasing a £500,000 property in London currently incurs a stamp duty charge of £15,000. Abolishing the tax could significantly reduce upfront costs, making it easier for families to buy their first home or move to a larger property.

Homeowners Considering a Move

Stamp duty is often cited as a barrier to moving. Analysts suggest that removing this cost could encourage around 2.5 million homeowners to sell and purchase new properties, which would inject activity into the housing market and free up housing stock.

First-Time Buyers in Expensive Markets

While first-time buyers already benefit from reduced or zero stamp duty on homes up to £425,000, the abolition could further ease entry into high-demand markets. This could allow more young families to purchase homes in areas previously considered unaffordable.

Who Might Lose?

Renters and Lower-Value Regions

The policy’s benefits are concentrated in higher-priced areas, potentially leaving renters and homebuyers in lower-value regions with minimal advantages. This could widen regional disparities in housing affordability, as the policy primarily helps those buying more expensive homes.

Public Services

Funding the £9 billion cost of stamp duty abolition may require cuts to other areas of the public sector, including welfare programs, foreign aid, and civil services. Critics warn that such reductions could negatively impact essential services and increase social inequality.

Regional Implications

The geographic impact is uneven. London, the South East, and other high-cost areas stand to gain the most, while northern and rural regions may see limited benefits. This could exacerbate existing regional inequalities, as wealthy areas enjoy more financial relief and increased housing market activity.

Conclusion

The proposed abolition of stamp duty presents a trade-off between stimulating the housing market and maintaining fairness in public finances. Homebuyers in expensive areas may benefit significantly, while renters, lower-income buyers, and public service users could face indirect costs. As the policy moves forward, careful planning and monitoring will be essential to ensure that it supports long-term housing access without disproportionately affecting other sectors of society.