A vocal Conservative MP has reignited his party's crusade against what he calls a "terrible tax" that hinders home ownership and productivity. Speaking at the Propertymark One conference, Shadow Chancellor Sir Mel Stride passionately argued for abolishing stamp duty on primary residences as a vital measure to revive the housing market.
Sir Mel claimed removing stamp duty would encourage more property transactions, providing a much-needed boost to housing supply. He cited analysis from the Adam Smith Institute suggesting that such a policy could lead to approximately 200,000 additional homes being constructed over the course of a five-year parliamentary term – a substantial 25% increase on current housebuilding rates.
The renewed Conservative push comes as the Labour government faces mounting criticism for its commitment to deliver 1.5 million new homes within the current Parliament. Recent figures show housing starts remain significantly below what's needed to achieve this ambitious target. Sir Mel condemned the government, saying: "The Labour government are failing young people across the board. The housing market is not working as it should and that is shutting people out of the dream of home ownership."
Sir Mel branded stamp duty "grossly unfair" and "grossly distortionary," describing it as a "disaster for our society, and a disaster for our economy." He highlighted how reliefs were ended last year, leading to higher bills, particularly for first-time buyers. With property prices rising, Sir Mel noted that stamp duty thresholds have not kept pace, resulting in more properties being drawn into higher tax brackets due to 'fiscal drag'.
According to the Office for Budget Responsibility, the total revenue from Stamp Duty Land Tax is projected to reach £19 billion by the end of the decade – a significant increase from around £10 billion at the start of this Parliament. Sir Mel condemned this as a "massive additional tax rise by the back door," where the Treasury quietly collects more revenue while the detrimental effects on the housing market worsen.
Source: Propertymark One