MPs push for stamp duty overhaul to improve housing market

A cross-party committee of MPs has called for a major overhaul or abolition of stamp duty, warning the tax is damaging the housing market and the wider economy. In a report published on Tuesday, the Housing, Communities and Local Government Committee stated that Stamp Duty Land Tax (SDLT) reduces affordability, slows property transactions, and must not be maintained in its current form.

The committee urged the government to launch a consultation before the end of 2026 to examine alternatives. Potential options include reducing rates, overhauling thresholds to better reflect local property prices, updating reliefs, or scrapping the tax entirely in favor of a revenue-neutral replacement. The report emphasized that reform should be considered alongside changes to council tax.

Committee chair Florence Eshalomi said homeownership rates in England have declined over two decades, and for many without family support, buying a home is "little more than a pipe dream." She stated that while no single solution exists, the government must apply a range of measures, adding that stamp duty reform cannot be done in isolation given the implications for public finances.