Conservatives Pledge To Abolish Stamp Duty But Is It Just A Gift For The Rich?

At the 2025 Conservative Party Conference in Manchester, party leader Kemi Badenoch unveiled a flagship housing policy aimed at reviving home ownership through the abolition of stamp duty on main residences.

Stamp duty is a tax paid when purchasing a property above a certain price threshold. It has long been criticised as a barrier for first-time buyers and as a drag on housing market activity. The Conservatives argue that scrapping it entirely for primary homes would make ownership more achievable and boost mobility for families looking to move.

But the announcement has already sparked debate about who would truly benefit. While the government frames it as a helping hand for ordinary buyers, economists and critics warn that the policy could deliver the biggest windfalls to wealthier homeowners, particularly in London and the South East.

What the Conservatives are Proposing

Under the plan, stamp duty on main homes would be abolished if the Conservatives win the next general election. The tax would still apply to second homes, investment properties and purchases made by companies or non-UK residents, according to ITV News.

Treasury estimates put the annual cost of the policy at around £9 billion in lost revenue. To cover that shortfall, the Conservatives have signalled up to £50 billion in broader public spending reductions by 2029, affecting welfare, overseas aid and the civil service, according to Mortgage Introducer UK. Badenoch has described this as a 'necessary trade-off' to reward hard work and restore aspiration through home ownership.

Who Gains Most And Who Misses Out

Because property values vary sharply across the country, the benefits would not be evenly shared. Buyers in high-cost areas stand to gain far more in absolute terms, according to The Guardian. Someone purchasing a £600,000 home in London could save tens of thousands of pounds, while a buyer spending £200,000 in the North might save only a few thousand.

Economists say the measure would help existing homeowners moving up or down the ladder more than first-time buyers. Many of those already on the ladder have benefited from years of capital growth, and removing stamp duty mainly lowers costs when they sell or relocate, according to the Financial Times.

For lower-income and younger buyers, the challenge extends beyond stamp duty. Deposits, legal fees and tighter mortgage criteria continue to be major hurdles. Critics argue that without reforms to address these barriers, the overall impact on affordability will be limited.

Can It Really Help First-Time Buyers?

Badenoch has presented the plan as a way to 'unlock home ownership for millions'. A previous Conservative policy introduced in 2022 already provided stamp duty relief for first-time buyers on homes worth up to £625,000, with no tax due on the first £425,000. This new pledge goes much further by removing the tax for all main homes.

Housing analysts suggest the benefits would be more meaningful if the policy were paired with supply-side reforms, such as building more homes and improving access to affordable mortgages. Without these, they warn, the measure could reinforce regional and income divides rather than reduce them.

The Verdict

Scrapping stamp duty on main residences would grab headlines and offer short-term relief to some buyers. Yet its rewards are likely to fall unevenly, with greater advantages for those already well positioned to buy.

Whether it becomes a genuine driver of home ownership or another tax cut favouring the affluent will depend on how it is funded and supported by wider housing reforms.