UK MPs call for major stamp duty overhaul to boost homeownership

A cross‑party Housing, Communities and Local Government Committee of MPs has urged a comprehensive reform of the Stamp Duty Land Tax, arguing it creates barriers to buying a home, slows the property market and harms the economy. The committee’s report states, “Stamp Duty Land Tax is a transaction tax that puts barriers in front of people seeking to buy a new home.” It calls for options ranging from abolishing the tax to reducing rates, adjusting thresholds to reflect local values and aligning any review with Council Tax reform.

The report highlights a long‑term decline in home‑ownership rates in England and cites the tax’s revenue of £4.3 billion in the first four months of 2026, a six‑percent drop on the same period a year earlier. Treasury officials note current reliefs, such as no stamp duty for first‑time buyers on homes up to £300,000. Chancellor Rachel Reeves, who last year lowered the thresholds, faces criticism from the committee for not addressing the tax’s complexity and its impact on buyers, investors and mobility.

Committee chair Florence Eshalomi warned that without change, many prospective owners, especially those lacking family support, see homeownership as “little more than a pipe dream.”