Overview

• The Institute for Fiscal Studies estimates abolishing stamp duty on primary residences would cost about £4.5bn, as Conservative leaders point to £47bn of identified savings across welfare, overseas aid and housing programmes to cover the loss.
• The pledge would remove the tax only for main homes and retain it on second properties, with party leaders framing the change as a way to boost mobility in the housing market.
• Economists cite OBR and HMRC analysis showing transactions are highly sensitive to stamp duty rates and warn abolition would likely prompt a one-off price jump that could absorb buyers’ expected savings.
• IFS director Helen Miller highlights options to replace revenue including modernising council tax to reflect current values and proportionality, capturing uplift from planning permissions, and using land value tax for business properties, while saying capital gains tax on main homes is politically unlikely.
• Commentators propose replacing the levy with an annual land value tax on future purchases to avoid deterring moves and prevent seller windfalls, acknowledging that such a system would take time to generate comparable revenue.