MPs Call for Stamp Duty Reform to Help First-Time Buyers
A parliamentary committee has urged the government to launch a consultation on alternatives to stamp duty by the end of 2026, arguing the current system creates barriers to home ownership for young buyers.
The Housing, Communities and Local Government Committee has called on the government to reform stamp duty as part of a package of measures to help first-time buyers afford a home. The cross-party committee published a report on 9 June urging ministers to launch a consultation on alternatives to the current Stamp Duty Land Tax system before the end of 2026.
Current Barriers to Homeownership
Florence Eshalomi MP, Chair of the committee, said rates of home ownership in England have declined over the last 20 years, with the prospect of owning a home now "little more than a pipe dream" for many people, especially those unable to draw upon family wealth. The committee argues that stamp duty creates friction in the housing market and acts as a barrier to mobility and home ownership.
While acknowledging that stamp duty generates significant revenue for the Treasury, the report recommends any reform should be considered alongside a wider overhaul of council tax to ensure replacements remain fair and fiscally sustainable. The committee also called for measures to bring hundreds of thousands of empty properties back into residential use and for the government to set annual homebuilding targets.
Impact on Foreign Buyers and Expats
If you're considering buying property in the UK as a non-resident or recent arrival, be aware that current stamp duty rates include a 2% surcharge for overseas buyers on top of standard rates. Any future reforms could affect how much tax you pay when purchasing property, so it's worth monitoring government consultations if you're planning to buy in the coming years. The committee's recommendations suggest potential changes ahead, though implementation timelines remain unclear.
