The economic benefits of Stamp Duty reform
Tom Zundel
Public First has today published new research commissioned by the Land, Planning and Development Federation (LPDF) looking at how reforming Stamp Duty could get the housing market moving again.
The research models the impact and cost of five options for reforming Stamp Duty, from reversing a cut to Stamp Duty thresholds in April 2025 to full abolition for primary residences. It finds that Stamp Duty reform could:
- Unlock up to 128,500 additional main-home transactions in England a year, boosting the market by 16%
- Enable the building of up to 10,900 more homes every year, a 6% rise on England's completions last year
- Add up to £6.6bn a year to the economy from higher transactions, the construction that follows, as well as the wider supply chain
- Recover between a quarter and 60% of the gross cost through additional tax receipts
The research is supported by a poll of 1,006 adults, which finds:
- Stamp Duty slows the housing market, with almost one in eight say it stopped or delayed a move and 73% of homeowners call it a barrier to moving
- It changes the homes people buy, with 43% saying it affected the size or type of home they bought or are planning to buy, and 11% saying it was decisive
- It keeps people in homes that no longer suit their needs, as 47% of downsizers or would-be downsizers say Stamp Duty has affected their decision-making, and among those who considered moving for work but didn't, 17% say the cost of Stamp Duty made it not worthwhile
- Reform would help people move and buy, with seven in ten (69%) homeowners saying removing Stamp Duty would help them move and six in ten renters (59%) saying it would help them buy
Download the research findings in full here.
