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MPs Demand Formal Review of Stamp Duty and Call for Government Consultation

A cross‑party committee says the tax raises upfront costs, slows home sales and must be examined alongside council tax and housebuilding reforms to prevent wider economic harm.

The Conservatives under Kemi Badenoch have said they will scrap stamp duty entirely (Photo: Leon Neal/Getty)
Andy Burnham, Mayor of Greater Manchester goes door to door Canvassing on May 20, 2026 in Wigan (Photo by Ryan Jenkinson/Getty Images)
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Overview

  • A cross‑party Housing, Communities and Local Government Committee published a report this week that urges ministers to launch a consultation on alternatives to Stamp Duty Land Tax by the end of 2026.
  • The committee concluded the tax raises the upfront cost of buying, creates 'cliff edge' banding that deters moves and is depressing homeownership and wider economic activity.
  • MPs asked the review to consider a menu of options including cutting rates, regional banding, full replacement with an annual property or land‑value tax, and updating reliefs for first‑time buyers.
  • HM Treasury defended current reliefs, noting first‑time buyers pay no tax on homes up to £300,000 and claiming average savings of about £710, while the report urged any change be paired with council tax reform and stronger powers to bring empty homes back into use.
  • Lawmakers warned of fiscal and market risks from sudden reform, citing how the pandemic stamp‑duty holiday fuelled price surges, and they pressed for clear plans on funding, transition and boosting housebuilding to avoid new distortions.