Stamp Duty Land Tax

Blake Stephenson Excerpts

Tuesday 28th October 2025 Commons Chamber

[Blake Stephenson (Mid Bedfordshire) (Con)]

Stamp duty is the worst kind of tax; there seems to be cross-party consensus on that point today. It stands in the way of the aspiring young couple who want to buy their first home, or move on and bring up a family. It punishes the older couple who want to downsize to a more suitable home once their family have flown the nest. It stifles growth and restricts mobility, and it has become so complex that it confuses even Deputy Prime Ministers. It is in all our interests to simplify it, and we can do that by abolishing it, so that we can get the housing market moving once again.

Members on both sides of the House have said that the market is bunged up, and it absolutely is. So many properties have been on the market for many months, not selling. That applies to houses at all points on the housing chain, not just multimillion-pound houses; but if those multimillion-pound houses do not sell, houses throughout the chain will also not sell, which has an impact on young people, families and old people throughout the country.

We have made a commitment to unshackling our housing market by abolishing stamp duty on primary residences. I was extremely pleased when that was announced at the Conservative party conference a few weeks ago. I was also pleased by the honesty of my right hon. Friend the Member for North West Hampshire (Kit Malthouse) when he said that this debate had been ongoing in the party for some time, and I am very pleased indeed that we have settled on this position.

In my constituency, the average house price is about £372,500. Purchasing a property at that price—if the online stamp duty calculators are accurate—would require a stamp duty outlay of £8,625. When the stamp duty land tax was introduced on land transactions by the then Labour Government in December 2003, the average house price in my constituency was £169,000, which meant a stamp duty outlay of just £1,090. When stamp duty is taken together with increasing house prices, there has been a 224% increase in the cost of buying a home; average earnings have risen by just 190% in the same period. Abolishing stamp duty will not fix that overnight. We still need to do more to build warm, dry homes in the places where people want to live, and I am pleased that today’s debate has been broadened slightly to cover the subject of house building.

I think that parties across the House want to build good-quality homes in the right places to enable young people to get on to the housing ladder. We do not seem to be at odds on that. However, those homes need to be in the right places, and I agree with my right hon. Friend the Member for North West Hampshire that their quality is incredibly important. If we improve the quality of new build homes, our communities will be much more open to accepting house building, which will increase supply and improve opportunities for young people. That is critical for all Members on both sides of the House.

In places like London, however, this Government and their Labour Mayor of London have utterly failed to tackle a severe housing crisis; there are lower targets, and there is reduced aspiration, rather than ambition. Building more houses will help to arrest the charging growth in house prices, but we know that just building is unlikely to bring prices down. Some 20% fewer 25 to 34-year-olds are homeowners today than in the year 2000. Average first-time buyers are almost a decade older today than in the 1980s. Our property market is failing our young people.

We must therefore do more to make it more affordable for people to make that next move. The Chancellor, desperate to raise more money following her economic vandalism, wants to drag more people into paying stamp duty, or into a higher rate of stamp duty, by freezing thresholds. Reform, which is reportedly about to scrap its half-baked stamp duty plans, is looking to concrete over our green belt, as it lacks any credible plans to deliver homes at all. The Conservatives are the only party with a sensible plan to unlock our housing market and give young people a stake in society and roots in their communities.

By abolishing stamp duty on primary residences, we can make it more than 2% cheaper for families to buy the average house in my constituency overnight. We can save prospective first-time buyers in London an average of £18,000—and I am sure that at least one hon. Member on the Government Benches, the hon. Member for Cities of London and Westminster (Rachel Blake), might wish to comment on the savings that she could deliver to her constituents by supporting this motion and pushing this policy through within her party.

That is the sort of real impact that people will feel in their pockets, and that they will feel while unboxing their prized possessions in the living room of their new family home. It will enable a new generation of young people to achieve the dream of home ownership, enable families to move up the housing ladder into more suitable family homes, unlock our housing market, and knock down a barrier to social mobility, stimulating our economy and abolishing the drag on growth. That is what I got into politics to deliver: less Government red tape, fewer taxes on aspiration and mobility, and families in homes of their own.

[Dr Jeevun Sandher (Loughborough) (Lab)]

It is a pleasure to speak in this debate on stamp duty, Madam Deputy Speaker. I think there is a lot of agreement on both sides of the House that, if we could just abolish stamp duty, we would. The question is not about abolishing stamp duty, but about how that would be paid for, and what we have seen from the Conservatives’ so-called costing is £23 billion of cuts to social security. That is £23 billion that they could not deliver while they were in office. Those cuts would lead to rising destitution, and not just for those who are out of work or for children, but for those who are in work as we speak.

It is worth thinking about how the social security system has changed over time and what has happened in our economy, and indeed in high-income nations across the world. Technological change has resulted in a divide between high-paid and low-paid jobs, so that some jobs—mostly done by graduates—pay enough to live on, but a lot more do not. For a two-parent household with two kids to afford just the basics, each parent needs to earn £35,000 a year. Some 40% of full-time workers earn less than that.

So that people can afford to live, we have used the social security system to top up wages. That is what we did with working tax credits, and it is what the Conservatives did when they reformed that system to become universal credit. However, they built a huge amount of cuts into the system. What did those cuts mean? They meant food banks in our nation, which we had never known previously. They meant kids going hungry. They meant parents unable to afford the basics. They meant that people across this country who worked hard and did the right thing could not afford a decent life.

Today, the Conservative party are once again suggesting £23 billion of cuts to social security. That is £23 billion out of the pockets of families, including working families. It is shocking; it should mean something to them—it should mean something to all of us. Our nation does better when every single one of us can afford a decent life. People who work hard should be able to have a decent life, yet those cuts would mean the opposite.

[Blake Stephenson]

The hon. Member is making a powerful argument. I just wonder whether he has reflected on the size of the welfare budget. Is he making the argument that welfare spending should not come down at all?

[Dr Sandher]

That is not at all the argument I am making. My argument is: how can we ensure that people live a decent life through £23 billion of social security cuts, given the huge amounts of destitution and increased unaffordability for families? I say this to the Conservatives as well: I worked in the Treasury under George Osborne, and even he would not have come up with something like this. When he tried something similar, he did not get it past this House.

--- Later in debate ---

[Sarah Bool]

I will make some progress.

Labour Members sneer when we talk about living within their means. That is something that every single constituent of ours has to do. They have to make those tough decisions not to spend at certain points, or to save, or to work harder, but this Government do not even follow the principles that they ask their own constituents to adhere to.

[Blake Stephenson]

Does my hon. Friend agree that it would be helpful if the Government were much more ambitious in finding the savings in their Budget, in order to deliver this ambitious policy that would support young people up and down our country?

[Sarah Bool]

Absolutely. My hon. Friend makes an incredibly important point and I really wish that the Government would be able to find that, but unfortunately, given the current Chancellor, I do not think that will be a possibility.

The Government should be creating an environment for people to thrive; they should not be fixing people in an environment. Stamp duty is one of those taxes that literally locks people in place. We must learn that we need to be able to trust individuals, give them those opportunities and see true growth. So I fully support, as I hope everyone would, this motion on stamp duty land tax.

--- Later in debate ---

[Bobby Dean (Carshalton and Wallington) (LD)]

Ask any economist, or indeed most Members in the Chamber today, and they would say that stamp duty is a bad tax. It creates friction in the market, whether we are talking about someone in a one-bedroom flat who is trying to take the step up to a family home, but who finds that their savings goal is now that much more, or whether we are talking about someone whose kids have flown the nest, and who is considering downsizing but finds the bill a disincentive.

It is important that we do not overstate what abolishing stamp duty will do. There have been lots of claims about how it will help millions of young people on to the ladder. For most people, this would not be the case. There is an exemption for first-time buyers of properties worth up to £300,000, and a further discount all the way up to half a million. It is important that we recognise that the proposal would not make a difference for huge numbers of people, including young people. I appreciate the points made about the fluidity of the market as well, but that is not the critical point.

The central problem in the housing market is the disparity between people’s wages and house prices. People have said to me, “I had to save hard to get my home,” and “You should have seen the interest rates back in the day.” I have no doubt that it has always been hard and a struggle to save up to buy a property, but the extent to which it has become out of reach today is not properly understood. Around the time I was born—1990, if Members are interested—the difference between the average wage and the average house price was about three times a person’s income, but today that average difference is eight times a person’s income. I represent a London constituency, and for people in London, that difference is 15 times the average income. That means that people in the top 10% of earners in the capital cannot afford the average home. It is an absolute disgrace that we have allowed ourselves to get to this situation.

[Blake Stephenson]

The hon. Member is making a powerful point in support of our motion. Does he intend to support it this afternoon?