We commissioned Public First to examine what Stamp Duty is doing to the housing market, and what reform would deliver. The research is published today.
The bill on an average English home has risen from £340 to £4,570 since 2006. The £125,000 threshold was set that year and has not moved since, while prices rose 84% around it. 83% of home movers now pay Stamp Duty, up from 49% before April 2025.
Modelling five commonly proposed reform options, the research finds reform could:
- Unlock up to 128,500 additional house moves a year, a 16% increase on current volumes
- Support the building of up to 10,900 more homes every year
- Add between £1.8bn and £6.6bn a year to the economy
The polling behind it shows why. 73% of homeowners call Stamp Duty a barrier to moving. 43% say it affected the size or type of home they bought. 47% of those who have downsized or are considering it say it has weighed on the decision. Of those who considered moving for work and decided against it, 17% cite the cost of Stamp Duty.
Criticism of the tax is longstanding and cross-party, from the Mirrlees Review to senior figures on both front benches. The harder question is what replaces it.
Our view is that Stamp Duty and council tax should be looked at together, as the HCLG Select Committee has recommended. One penalises people for moving. The other still rests on 1991 valuations, so modest homes are paying more than far more valuable ones.
Even full abolition on main homes returns around £2bn a year through additional receipts, leaving a net cost of roughly £6bn. A proportional property tax in place of both would cover that. It would be fairer, it would stop taxing mobility, and it would leave the Treasury no worse off.
The Committee asked ministers to consult on alternatives by the end of the year. The forthcoming Budget is the moment for HM Treasury to set that work in motion.
Read the research in full here.
The Case For Stamp Duty Reform Research Launched
