UK stamp duty reform under scrutiny ahead of 2026 consultation

A cross‑party Housing, Communities and Local Government Committee has urged the UK government to launch a consultation on stamp duty reforms by the end of 2026. The report, released on 9 June 2026, argues that the current stamp duty land tax, including a 5 % surcharge on additional properties for landlords introduced in October 2024, hinders first‑time buyers and reduces labour mobility. It proposes alternatives such as revenue‑neutral replacements, lower rates or revised banding, and suggests linking reform with council tax.

Economists and think‑tanks have long criticised the tax as damaging to the housing market, while the Treasury points to the billions of pounds the duty generates each year. Media coverage this week, including a Sunday Times feature, highlighted growing calls to abolish or overhaul the duty, noting its impact on buyers, families and downsizers. Parallel analysis from the Item Club forecasts a continued slowdown in the UK housing market through 2027, with price growth expected to fall to 1.1 % in 2026 and 0.7 % in 2027, and a regional divide that may see northern England outpacing London and the South East.