Among the headline announcements was Conservative Party leader Kemi Badenoch’s renewed pledge to abolish Stamp Duty on primary residences if the party wins the next General Election. The Conservatives have also proposed removing Inheritance Tax from family homes, repealing the forthcoming High Value Council Tax Surcharge and reducing the cost and complexity of building new homes.
The announcements come at a time when housing is receiving significant political attention, with Labour also announcing measures affecting first-time buyers and homeowners at its own conference.
For those considering moving, the proposals raise some important questions about the future cost of buying and selling a home. However, they remain political pledges rather than changes to the current rules.
Stamp Duty Abolition
The Conservatives have renewed their pledge to abolish Stamp Duty on primary residences, a proposal which was first announced by the party in 2025.
Stamp Duty is a significant cost for many people moving home. Whilst first-time buyers currently benefit from Stamp Duty relief up to certain thresholds, other buyers can face substantial costs depending on the value of the property they are purchasing.
Leading regulatory body Propertymark has long highlighted Stamp Duty as a factor that can discourage people from moving, particularly those considering downsizing. It has argued that reducing the cost of moving could help improve movement through the housing market.
Could abolishing Stamp Duty encourage more people to move?
At Mackenzie Smith, we have long believed that Stamp Duty can act as a barrier to moving. The cost can influence decisions at different stages of the property ladder. Homeowners may delay moving to a larger property as their circumstances change and those considering downsizing may decide that the cost of selling and buying again is too high.
Removing Stamp Duty on primary residences could therefore have a wider effect than simply reducing the cost for an individual buyer. If more homeowners felt able to move, this could help to increase the active transactions through the wider housing chain.
This is why we have previously argued that Stamp Duty reform should be considered in terms of its impact on the whole housing market, rather than solely as a tax paid by individual buyers.
The Conservatives’ proposal is, however, a significant step beyond some previous suggestions for reform, as it would remove Stamp Duty altogether on primary residences rather than simply changing rates or increasing exemptions.
The detail will matter. Stamp Duty provides considerable revenue to the Government, so any abolition would need to be considered alongside its implications for public finances and whether other taxes or measures would be used to replace that income. For now, Stamp Duty remains payable under the current rules.
Other Proposed Property Tax Changes
The Conservatives have proposed removing Inheritance Tax from family homes, with couples also able to pass an additional £1 million tax-free. Badenoch has also set out a longer-term ambition to abolish Inheritance Tax altogether when economic circumstances allow.
The Conservatives have also pledged to repeal the High Value Council Tax Surcharge, which is currently due to be introduced in April 2027 for higher-value properties. Together, these proposals represent a wider focus on reducing taxation associated with property ownership and moving home. As with Stamp Duty, however, they are proposals rather than changes to the current system.
Plans to Reduce the Cost of Building New Homes
In positive news for developers and buyers looking for new homes, the Conservatives focused on increasing housing supply and reducing the cost of development. The party has proposed replacing Section 106 agreements and the Community Infrastructure Levy with a single developer charge, alongside reducing what it considers unnecessary planning and regulatory barriers to housebuilding.
The Conservatives claim that their wider reforms could reduce the cost of a new-build home by up to £50,000. This is a Conservative estimate, so if implemented, the eventual impact on prices would depend on how any reduction in development costs fed through the housebuilding process.
We would stress that in addition, there should be more focus on making training for construction workers more accessible, alongside more infrastructure and support for independent local builders and developers.
Proposed Changes to the Future Homes Standard
Controversially, the Conservatives have also proposed scrapping the Future Homes Standard and associated low-carbon heating requirements for new homes. The party argues that removing these requirements could reduce costs and complexity for housebuilders. This highlights one of the wider challenges facing policymakers; increasing the supply of new homes, while maintaining appropriate standards for the properties being built.
With costs having limited developers and the building of new homes in the last year, we’d agree that it’s important to make progress with policy in this area. Yet, it’s crucial to ensure new homes remain fit for our families and the future, a factor which many local developers have already put a great deal of thought, planning and work into.
The Wider Political Focus on Housing
Separate Labour proposals demonstrate the wider political focus on the cost of home ownership, access to the housing market and the way homes are bought, sold and managed.
The First Homes Scheme
The Conservative proposals come alongside a number of housing announcements made by Labour at their own party conference. One of the most relevant for prospective buyers is the proposed Your First Home scheme. It is intended to support eligible first-time buyers in England purchasing new-build homes from participating developers, with expected deposits of 2.5% backed by a government equity loan worth 20% of the purchase price. The loan would have an initial interest-free period, whilst further details on eligibility, costs and implementation are expected at the Budget on 28 October 2026.
Leasehold Legislation
Labour has also announced proposed changes affecting leaseholders and homeowners on privately managed estates. Andy Burnham has promised legislation before the end of 2026, including proposed powers to cap certain permission and administration fees, with a consultation expected to consider which charges should be covered and at what level.
What could the proposals mean for homeowners?
For homeowners and those considering a move, the announcements highlight several areas that could have an impact if the proposals ultimately become policy.
The abolition of Stamp Duty on primary residences could reduce one of the largest upfront costs associated with moving and potentially encourage greater movement through the housing market. Changes to Inheritance Tax could affect longer-term decisions about passing property between generations, while the proposed changes to housebuilding could influence the supply and cost of new homes.
However, the eventual impact will depend on the detail of each policy, how it is funded and how it is implemented. Unless or until proposed changes come into effect, homeowners should continue to base decisions on the current rules.
What happens next?
The conference announcements are likely to keep housing firmly in the political conversation over the coming months. Further detail on Labour’s Your First Home scheme is expected at the Budget on 28 October.
For the property market, the key questions will be whether proposed changes can genuinely improve housing affordability and supply, while also making it easier for people to move when their circumstances change.
At Mackenzie Smith, we have long recognised the importance of a housing market where people can move with greater ease and confidence. Stamp Duty reform, in particular, is an issue having excellent potential to improve market mobility.
With housing continuing to be an important political issue, we will continue to follow developments and consider what proposed changes could mean for homeowners, buyers and sellers across North Hampshire, Surrey and Berkshire.
If you’d like advice or guidance on the property market in your local area, please feel free to contact your nearest office.
Stay up to date with the latest property news, expert insights, and valuable tips — sign up for our newsletter to receive information directly to your inbox.
Δ
