Stamp Duty's Impact on the Property Ladder

Across North Hampshire, Surrey and Berkshire, we continue to see a market that is finding its footing. Yet time and again, Stamp Duty continues to surface as an issue.

Increased Contributions from Buyers

Whilst buyers are now adapting, sellers are pricing more thoughtfully and transactions are taking place, over the past year the impact of threshold changes on the tax has become more visible. Buyers are now contributing significantly more to it at the point of purchase.

Statistics confirm that since thresholds reverted, first-time buyers are paying more proportionally. With more first-time buyers on the market this is perhaps unsurprising, but with the average cost rising, it remains a barrier to others striving to get onto the property ladder.

The Wider Impact on Movement

What we are seeing locally reflects the broader picture, with Stamp Duty influencing every step of the ladder. It can delay upsizing, discourage downsizing and ultimately reduce the number of homes coming to market.

We have long described it as a barrier, something that can hold back otherwise willing movers. Scrapping the tax would have wider implications, helping to open up supply, increase flexibility and make way for the natural flow of the housing market. Even platforms such as Rightmove have called for reform, signalling that thresholds have struggled to keep pace with modern property values.

Calls for Change

What feels different now is the momentum behind the discussion. There is a growing recognition that Stamp Duty may no longer reflect how or why people move home today. Whether it is first-time buyers trying to take that initial step, or existing homeowners looking to adapt to changing circumstances, the tax increasingly feels out of step with its place in the market.

This has led to renewed calls for change, including a recently launched petition proposing the removal of Stamp Duty on main residences altogether, which you can see here.

Of course, with it being a significant source of revenue, any reform of Stamp Duty would need to be carefully considered. However, the argument for change has significant merit. In today’s otherwise adjusting market environment, the best time to make that change is now.  

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